Property Valuation
The principle of anticipation in real estate appraisal holds that:
ABuyers anticipate future costs of ownership
BValue is created by the expectation of future benefits (income, use, enjoyment) from the property✓ Correct
CAppraisers anticipate future market changes in their estimates
DBuyers anticipate price reductions and offer less than asking price
Explanation
The principle of anticipation recognizes that value reflects the present worth of expected future benefits—income, utility, or enjoyment—that the property will provide to the owner.
Related Arizona Property Valuation Questions
- The 'supply and demand' principle in Arizona real estate appraisal holds that:
- An Arizona appraiser is bound by the Uniform Standards of Professional Appraisal Practice (USPAP), which:
- Interim use in appraisal refers to:
- An Arizona appraiser who finds that the subject property has superior lot size compared to a comparable sale will make a(n):
- A cost approach appraisal requires calculating depreciation, which includes:
- In Arizona, the purpose of the URAR (Uniform Residential Appraisal Report) is to:
- In the sales comparison approach to appraisal, adjustments are made to the comparable properties (not the subject) because:
- In Arizona, 'functional obsolescence' in appraisal refers to:
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