Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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!

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What does a seller's market indicate?

Surplus of buyers
Surplus of homes
Balanced buy and sell rates
Decreased property values

The correct answer is: Surplus of buyers

A seller's market indicates a surplus of buyers, meaning there are more buyers looking to purchase homes than there are homes available for sale. This can lead to increased competition among buyers and often results in higher property prices. Options B, C, and D are incorrect because they suggest factors that would not be present in a seller's market. A surplus of homes (option B) would indicate a buyer's market, where there are more homes available for sale than there are buyers looking to purchase. A balanced buy and sell rate (option C) would suggest an equal number of buyers and homes for sale, which would also not result in a seller's market. Finally, decreased property values (option D) would also suggest a buyer's market, as sellers would need to lower prices in order to entice buyers to purchase.