Property Valuation
What is the 'principle of anticipation' in Idaho real estate valuation?
AThe future is more important than the past in determining value
BValue is created by anticipated future benefits — present value is the sum of expected future income and reversionary value✓ Correct
CBuyers anticipate what improvements they will make
DThe market anticipates government zoning changes
Explanation
The principle of anticipation holds that value is based on the present worth of future benefits. Buyers pay today what they believe the property's future income and resale value are worth in today's dollars.
Related Idaho Property Valuation Questions
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