Property Valuation
In Hawaii, which appraisal concept holds that value is created by the expectation of future benefits?
AA. Principle of substitution
BB. Principle of anticipation✓ Correct
CC. Principle of contribution
DD. Principle of conformity
Explanation
The principle of anticipation states that present value is based on the expected future benefits the property will provide—income, enjoyment, and equity appreciation.
Related Hawaii Property Valuation Questions
- Which appraisal principle states that the value of a component part of a property is measured by its contribution to the overall value of the whole?
- A Hawaii residential property has a gross monthly rent of $3,500 and a gross rent multiplier (GRM) of 180. What is the estimated value?
- In Hawaii, gross rent multiplier (GRM) is calculated by dividing:
- In an appraisal, what is the term for a loss in value from any cause?
- In Hawaii, which factor most significantly affects the difference in value between leasehold and fee simple properties?
- In Hawaii, which type of depreciation is curable?
- In Hawaii, what is a 'desk review' appraisal?
- What is 'effective age' versus 'chronological age' in real estate appraisal?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →