Oregon Real Estate | Finance 5 Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
An educated opinion or Appraisal
estimate of value as of a
specific date.
The price a willing buyer and Market Value
willing seller would agree
upon with proper exposure
and no pressure.
Value established by a tax Assessed Value
assessor for property tax
purposes.
The cost to replace or rebuild Insurance Value
a property for insurance
purposes.
The price agreed upon by Sales Price
buyer and seller.
The ability of a property to Utility
satisfy a need or desire.
, Demand supported by the Effective Demand
ability to pay.
The legally permissible, Highest and Best Use
physically possible, financially
feasible use that produces the
greatest net income.
A buyer will not pay more than Principle of Substitution
the cost of an equally
desirable substitute.
A component of a property is Principle of Contribution
worth what it adds to total
value.
A property achieves maximum Principle of Conformity
value when it conforms to
surrounding properties.
Value is created by expected Principle of Anticipation
future benefits.
Value increases when supply Supply and Demand
decreases (if demand stays
constant) and decreases when
supply increases.
Questions and Answers with Verified
Solutions | Latest Updated 2026
An educated opinion or Appraisal
estimate of value as of a
specific date.
The price a willing buyer and Market Value
willing seller would agree
upon with proper exposure
and no pressure.
Value established by a tax Assessed Value
assessor for property tax
purposes.
The cost to replace or rebuild Insurance Value
a property for insurance
purposes.
The price agreed upon by Sales Price
buyer and seller.
The ability of a property to Utility
satisfy a need or desire.
, Demand supported by the Effective Demand
ability to pay.
The legally permissible, Highest and Best Use
physically possible, financially
feasible use that produces the
greatest net income.
A buyer will not pay more than Principle of Substitution
the cost of an equally
desirable substitute.
A component of a property is Principle of Contribution
worth what it adds to total
value.
A property achieves maximum Principle of Conformity
value when it conforms to
surrounding properties.
Value is created by expected Principle of Anticipation
future benefits.
Value increases when supply Supply and Demand
decreases (if demand stays
constant) and decreases when
supply increases.
