Property Valuation
The principle of anticipation states that value is:
ABased solely on what comparable properties have sold for in the past
BDetermined by the present worth of future benefits the property is expected to produce✓ Correct
CFixed based on construction cost minus depreciation
DEqual to the replacement cost of improvements plus land value
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits (income, use, resale). It forms the theoretical basis for the income approach, where future income streams are discounted to present value.
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