Property Valuation
The 'principle of anticipation' in Florida real estate states that:
AAll buyers purchase with the expectation of profit
BValue is influenced by the expectation of future benefits to be derived from the property✓ Correct
CSellers can anticipate market price changes
DAppraisers must anticipate all possible uses of a property
Explanation
The principle of anticipation holds that value reflects the anticipated future benefits of ownership — income, utility, appreciation. In the income approach, investors capitalize expected future income stream into a present value estimate.
Related Florida Property Valuation Questions
- A Florida appraiser is appraising a 4-unit residential income property. Which appraisal approach is considered MOST applicable for this type of property?
- An appraiser is valuing a Florida duplex using the income approach. The property has a gross income of $36,000 and operating expenses of $12,000. Using a 7.5% cap rate, what is the indicated value?
- Under Florida's Save Our Homes (SOH) cap, a homesteaded property's assessed value can increase no more than:
- A Florida property appraiser uses the 'direct capitalization' method to value an income property. This method:
- In Florida, an 'as-is' appraisal values a property:
- In a Florida appraisal, 'accrued depreciation' is defined as:
- When Florida property values in a specific neighborhood are declining, an appraiser applying the principle of 'regression' would expect that:
- When using the sales comparison approach for a Florida home, an appraiser should use comparable sales that are generally:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →