How can market supply affect buyers in real estate?

The correct choice emphasizes the relationship between market supply and buyer agency in the real estate market. When there is more supply available—meaning that there are more properties for sale—buyers have a wider selection of options to choose from. This increased competition among sellers generally leads to lower prices, as sellers may be more inclined to negotiate in order to attract buyers.

With more choices available, buyers can take their time evaluating properties, comparing features, and potentially waiting for better deals. This scenario of greater supply translates into enhanced negotiation power for buyers, as they can leverage the abundance of options to secure more favorable terms or lower prices.

In contrast, a tight market with limited supply usually puts buyers at a disadvantage, as sellers have less incentive to negotiate downwards on price or terms due to higher competition among buyers for the available properties. Thus, the dynamics of supply directly influence buyer power, making it crucial to understand how these elements interact in the real estate marketplace.