Property Valuation
The principle of anticipation in real estate valuation holds that value is:
ABased solely on the property's historical cost
BThe present worth of expected future benefits, including income and amenities✓ Correct
CEqual to replacement cost minus depreciation
DDetermined by comparable sales only
Explanation
The principle of anticipation states that value is the present worth of anticipated future benefits (income streams, use, and amenity value). Buyers and investors pay today's price based on expected future benefits.
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