Property Valuation
The principle of anticipation states that property value reflects:
AThe historical income the property has generated
BThe present value of anticipated future benefits of ownership✓ Correct
CThe seller's expected profit from the sale
DThe appraiser's expectation of market trends
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits. Property values reflect buyers' expectations about future income, appreciation, and use — not just the current situation.
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