Which term describes a market condition where buyers have many options and sellers compete for buyers?

• A. Buyer's Market
• B. External Obsolescence
• C. Diminishing Returns
• D. Assemblage

Answer: (A)

A market condition where buyers have many options and sellers compete for buyers describes a buyer's market. In this situation, there’s more housing supply than demand, so buyers gain leverage. Homes may stay on the market longer and may sell for lower prices or on more favorable terms, since sellers must attract buyers amid abundant choices. The concept hinges on supply exceeding demand, which contrasts with a seller's market where demand outpaces supply and sellers have the upper hand.

External obsolescence is about negative influences outside the property that reduce value, not a market condition. Diminishing returns refers to the idea that adding more of a resource yields progressively smaller gains, which isn’t about market conditions. Assemblage is the process of combining adjacent parcels to increase value, not the overall market dynamic.