Property Valuation
The principle of anticipation in Iowa appraisal holds that:
AFuture changes in supply and demand determine current value
BValue is created by the expectation of future benefits✓ Correct
CProperties always appreciate over time
DOlder properties lose value faster than newer ones
Explanation
The principle of anticipation states that value is determined by the expectation of future benefits (income, amenities, appreciation). Buyers pay for what they expect to receive from the property in the future.
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