Property Valuation
The principle of anticipation holds that value is based on:
APast sales prices of the property
BThe present value of expected future benefits the property will produce✓ Correct
CThe cost to reproduce the property today
DThe current assessed value for tax purposes
Explanation
The principle of anticipation states that value is created by the expectation of future benefits (income, use, appreciation). Buyers pay for what they expect a property to provide in the future.
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