Property Valuation
The principle of anticipation in real estate valuation states that:
APast sales determine current value
BValue is influenced by expected future benefits✓ Correct
CAll improvements add value equally
DValue is static once established
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits—buyers pay based on the benefits they anticipate receiving from owning the property.
Related Kentucky Property Valuation Questions
- In Kentucky, the PVA (Property Valuation Administrator) is responsible for:
- The principle of anticipation in Kentucky property valuation holds that value is based on:
- When making adjustments in the sales comparison approach, if a comparable property has a feature the subject property lacks, the appraiser should:
- In Kentucky, the 'market data approach' is another term for the:
- Functional obsolescence is caused by:
- In the cost approach, if land value is $50,000, replacement cost new of improvements is $280,000, and total depreciation is 25%, the estimated value is:
- The income approach uses a gross rent multiplier (GRM) to estimate value. A property has monthly rent of $1,500 and comparable GRM is 120. The estimated value is:
- An appraisal is an estimate of a property's:
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