Property Valuation
In Louisiana, the 'principle of anticipation' in real estate valuation holds that:
ABuyers wait to see what happens to the market before purchasing
BValue is influenced by the expectation of future benefits the property will produce — present value reflects anticipated future income or utility✓ Correct
CSellers anticipate higher prices in the future and refuse to sell now
DAppraisers must anticipate regulatory changes
Explanation
The principle of anticipation states that value is created by the expectation of future benefits — buyers pay for what they expect to receive from a property in terms of income, utility, or future appreciation. All value approaches ultimately reflect anticipated future benefits.
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