Property Valuation
Which appraisal principle holds that value is created by the expectation of future benefits?
ASubstitution
BAnticipation✓ Correct
CContribution
DConformity
Explanation
The principle of anticipation holds that value is the present worth of all future benefits (income, amenities, use). Buyers pay today based on what they expect to receive from the property in the future.
Related Arkansas Property Valuation Questions
- Functional obsolescence in a property is caused by:
- When appraising a historic property in Arkansas, the appraiser must consider:
- Reproduction cost in the cost approach is the cost to build:
- An appraisal with a retrospective (historical) effective date is used in which context?
- The principle of ANTICIPATION in appraisal states that:
- In the income approach, 'reserves for replacement' (replacement reserves) represent:
- What is the purpose of a Broker Price Opinion (BPO)?
- The gross income multiplier (GIM) differs from the GRM in that GIM uses:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →