Property Valuation (alternative)
The Maryland appraisal principle of 'anticipation' holds that value is created by:
APast sales of comparable properties
BThe expectation of future benefits — income, amenities, or appreciation✓ Correct
CCurrent replacement cost of the building
DThe current assessed value by SDAT
Explanation
The principle of anticipation states that value is the present worth of anticipated future benefits. Buyers pay today based on what they expect the property to deliver in the future.
Related Maryland Property Valuation (alternative) Questions
- In Maryland, a broker price opinion (BPO) or comparative market analysis (CMA):
- When comparing sales in the same Maryland neighborhood, an appraiser should give the most weight to comparables that are:
- Maryland appraisers are required by USPAP to disclose when:
- A Maryland appraiser who finds that the subject property's neighborhood has been declining due to nearby industrial development would note this as:
- A Maryland investor uses a 'discounted cash flow' (DCF) analysis for a commercial property. The DCF analysis:
- In Maryland, the 'economic rent' of a property refers to:
- The principle of substitution in Maryland appraisal theory states that:
- In Maryland, the income capitalization approach values property by:
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