Property Valuation
In a 'buyer's market,' real estate prices tend to:
ARise because there are more buyers than homes available
BRemain stable because supply and demand are in balance
CDecline or stabilize because there are more properties available than buyers✓ Correct
DRise because sellers have more negotiating power
Explanation
A buyer's market occurs when supply (available properties) exceeds demand (active buyers). With more choices and less competition, buyers have greater negotiating power, which tends to put downward pressure on prices.
Related California Property Valuation Questions
- What is a 'land residual' in real estate investment analysis?
- What is the purpose of the 'Uniform Standards of Professional Appraisal Practice' (USPAP)?
- What does the term 'market value' mean in real estate appraisal?
- The principle of 'substitution' in real estate valuation holds that:
- The principle of substitution states that:
- Which of the following is an example of external (economic) obsolescence?
- A Competitive Market Analysis (CMA) prepared by a real estate licensee differs from a formal appraisal in that:
- What is 'comparables' (comps) in real estate?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →