Property Valuation
In Michigan, the principle of anticipation states that:
AValue reflects past use patterns
BPresent value is influenced by expected future benefits, income, and utility✓ Correct
CSupply and demand determine current market prices only
DProperties in anticipated flood zones have lower values
Explanation
The principle of anticipation holds that property value is the present worth of all anticipated future benefits. Buyers pay for what they expect the property to provide in the future.
Related Michigan Property Valuation Questions
- A Michigan property has an annual gross rent of $24,000. Using a gross rent multiplier (GRM) of 120, the estimated value is:
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