What is the effect of a balanced market on negotiation conditions?

A balanced market is characterized by an equilibrium between supply and demand, meaning there are roughly equal numbers of buyers and sellers. In such conditions, negotiation tends to be more constructive, as both parties have similar leverage. This equality allows for clearer communication regarding terms and raises the likelihood of both parties finding common ground.

When offers include terms that are acceptable to all parties, it fosters collaboration and can lead to more successful transactions. Buyers may feel less pressure to make aggressive bids, and sellers may be less likely to reject reasonable offers. This positive dynamic is a key feature of a balanced market, making option B the most accurate representation of its effect on negotiation conditions.

In contrast, scenarios such as high offers, stressful negotiations, or unconditional offers tend to be associated with either a seller's market or a buyer's market, where imbalance creates tension and less favorable terms for one side.