Property Valuation
What is the 'principle of change' in Oregon real estate valuation?
AValues never remain constant — real estate markets are always changing
BThe principle that real estate values are in constant flux due to physical, economic, social, and governmental forces✓ Correct
CThe change in value caused by improvements to the property
DOREA's principle requiring appraisers to update their certifications
Explanation
The principle of change recognizes that real estate values are constantly changing due to physical deterioration, economic cycles, social trends, and government policies. No market is static. Oregon appraisers must use current, recent data to capture the current market and must account for time adjustments when using older comparable sales. This principle explains why outdated appraisals lose relevance quickly.
Related Oregon Property Valuation Questions
- An appraiser is estimating a property's value using a gross rent multiplier (GRM) of 140. The monthly rent is $1,800. What is the estimated value?
- The 'plottage' principle in appraisal refers to:
- When comparing a property to a comparable sale that occurred 1 year ago in an appreciating market, an appraiser would make a:
- Which of the following Oregon property types would MOST likely be appraised primarily using the cost approach?
- An appraiser calculates the cost to build a new structure identical to the subject using current prices. This is called:
- Under the income capitalization approach, if a property's capitalization rate increases, the estimated property value will:
- In Oregon, a property's 'assessed value' for property tax purposes may differ significantly from its 'real market value' due to which legislation?
- In the sales comparison approach, 'adjustments' are made to the comparable sales to account for differences between the comparables and the subject property. If a comparable sold for $350,000 but lacks a garage that the subject has (valued at $20,000), the adjusted sale price of the comparable is:
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