Property Valuation
The principle of 'anticipation' in real estate valuation holds that:
AProperty values always decrease over time
BValue is created by the expectation of future benefits (income, appreciation) to be received from owning the property✓ Correct
CProperties appreciate most in anticipation of a sale
DAppraisers must anticipate future market conditions exactly
Explanation
The principle of anticipation states that present value reflects expectations of future benefits. Buyers and investors pay today based on their anticipation of future income, use, and capital appreciation from the property.
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