Property Valuation
The principle of 'anticipation' in real estate value means that:
AValue is based on the historical cost of improvements
BValue is influenced by the anticipated future benefits a property will produce✓ Correct
CInvestors always anticipate market downturns before buying
DCurrent value reflects the average of past and future value
Explanation
The principle of anticipation states that value is created by the expectation of future benefits. Buyers and investors pay based on what they expect the property will produce or be worth in the future.
Related Massachusetts Property Valuation Questions
- A Massachusetts appraiser preparing a retrospective appraisal uses:
- Which appraisal approach is most appropriate for valuing a single-family residence in a neighborhood with many recent sales?
- The formula for the income capitalization approach is:
- In Massachusetts, the gross rent multiplier (GRM) is calculated as:
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- The income approach to value is most appropriate for which Massachusetts property type?
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