Property Valuation
In Massachusetts, the 'principle of anticipation' in property valuation holds that:
AThe past determines current value
BValue is created by expected future benefits✓ Correct
CProperty always appreciates over time
DAppraisers must anticipate market changes
Explanation
The principle of anticipation holds that value reflects the present worth of future benefits. Buyers pay for the anticipated income, utility, and/or appreciation they expect to receive from the property.
Related Massachusetts Property Valuation Questions
- In the cost approach, the 'reproduction cost' is the cost to build:
- When estimating replacement cost for an older Massachusetts Victorian home, an appraiser using the 'comparative unit method' (square foot method) would:
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- Which of the following is NOT one of the four essential elements of value (DUST)?
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- In Massachusetts, a licensed appraiser performing an appraisal for a federally related transaction must be certified under:
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