Property Valuation
The principle of anticipation in Iowa appraisal theory holds that value is:
ABased solely on the property's historical sales price
BCreated by the expectation of future benefits to be derived from the property✓ Correct
CSet by the county assessor's most recent appraisal
DDetermined only by the cost of constructing improvements
Explanation
The principle of anticipation states that present value reflects the anticipated future benefits (income, utility, and reversion) that a property is expected to provide. This is the foundation of the income capitalization approach.
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