Property Valuation
An appraiser is comparing two Oregon properties: one on the east side of Portland (valued at $450,000) and one on the west side (valued at $650,000). The higher west-side value likely reflects:
AHigher construction costs for west-side homes
BEconomic forces including locational advantages, demand, and neighborhood characteristics✓ Correct
CWest-side properties being newer on average
DHigher tax rates on the west side
Explanation
The principle of anticipation and economic forces explain value differences between locations. The Portland west side commands higher values due to factors like proximity to top-rated schools, terrain, views, and demand — economic and locational forces that are captured in market values.
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