Property Valuation
In Michigan, the principle of 'anticipation' in real estate appraisal means:
AProperty values decrease as they age
BPresent value is influenced by expected future benefits (income, appreciation, use)✓ Correct
CBuyers pay more for properties with recent renovations
DAppraisers must anticipate future market trends in valuations
Explanation
The principle of anticipation states that value today is based on the present value of future benefits the property will yield. This principle underlies the income approach — value = discounted future income.
Related Michigan Property Valuation Questions
- In Michigan, an appraiser preparing a 'desk review' of another appraiser's report:
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- A property generates a net operating income (NOI) of $45,000 annually. Using a capitalization rate of 7.5%, what is the estimated value?
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- A Michigan home is appraised using the GRM method. Monthly rent is $1,500 and the GRM for comparable properties is 140. What is the estimated value?
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