Alabama Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What characterizes a buyer's market?

Surplus of buyers
Surplus of homes
Equal number of buyers and sellers
Rapidly increasing home values

The correct answer is: Surplus of homes

A buyer's market is characterized by a surplus of homes available for purchase. This means that there are more homes for sale compared to the number of potential buyers in the market. This can result in greater bargaining power for buyers and often leads to lower home prices. Option A is incorrect because a surplus of buyers does not necessarily indicate a buyer's market - it could also be a seller's market if there is a high demand for homes. Option C is incorrect because an equal number of buyers and sellers would create a balanced market, not a buyer's market. Option D is incorrect because rapidly increasing home values typically occur in a seller's market where there is high demand and limited supply of homes. Therefore, option B is the only accurate characterization of a buyer's market.