Property Valuation
In New York, the 'principle of anticipation' holds that:
ABuyers always pay based on historical values
BValue is created by the expectation of future benefits — a property's value is the present worth of all future benefits (income, enjoyment, etc.) to be derived from it✓ Correct
CValues increase in anticipation of new development nearby
DSellers anticipate higher prices in a rising market and list above market value
Explanation
The principle of anticipation holds that property value is based on the present value of expected future benefits. Investors and buyers pay based on what they expect the property will generate or provide in the future — not what it has done in the past.
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