Property Valuation
The principle of 'anticipation' in Mississippi real estate valuation holds that:
AProperties near amenities anticipate higher taxes
BValue is based on the future benefits (income, enjoyment) expected from ownership✓ Correct
CBuyers anticipate that all properties will appreciate
DSellers anticipate receiving full asking price
Explanation
The principle of anticipation states that value is created by the expectation of benefits (income, use, enjoyment) to be received in the future from ownership of the property.
Related Mississippi Property Valuation Questions
- In a Mississippi appraisal using the income approach, 'potential gross income' (PGI) differs from 'effective gross income' (EGI) in that:
- A Mississippi appraisal report's 'effective date of appraisal' is the date:
- A Mississippi appraiser determines that a comparable sale occurred nine months ago and the market has since appreciated 3%. The time adjustment would be a:
- Which of the following best describes the difference between 'price' and 'value' in Mississippi real estate?
- A Mississippi property suffers from 'economic obsolescence' caused by a new industrial facility built nearby that creates noise and odor. This type of obsolescence is:
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