Property Valuation
The 'principle of anticipation' in real estate appraisal states that value is:
ABased on past sales prices of comparable properties
BCreated by the expectation of future benefits (income, use, or resale) to be derived from the property✓ Correct
CBased on the cost to replace the property
DDetermined by the current use of the property
Explanation
The principle of anticipation holds that value is the present worth of future benefits. In income-producing real estate, this means value is based on the expectation of future income streams and the eventual resale value—the income capitalization approach embodies this principle.
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