Property Valuation
What is 'buyer's market versus seller's market' and how do market conditions affect Hawaii real estate valuation?
AA. Market conditions do not affect appraised value; appraisers always find the same value regardless of market
BB. In a buyer's market (more supply than demand), prices soften; in a seller's market (more demand than supply), prices rise; appraisers adjust for market conditions when selecting and adjusting comparables✓ Correct
CC. Market conditions only affect listing prices, not appraised values
DD. Hawaii is always a seller's market; buyer's market conditions don't occur here
Explanation
Market conditions profoundly affect real estate value. In Hawaii's historically tight housing market with limited supply, seller's market conditions often prevail—properties sell quickly at or above asking price.
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