Property Valuation
In New York, the 'principle of anticipation' in real estate valuation states that:
AValue is determined by past sales only
BValue is created by the expectation of future benefits—income, utility, or resale proceeds—to be derived from property ownership✓ Correct
CBuyers should anticipate problems with all properties
DAppraisers should anticipate market downturns
Explanation
The principle of anticipation holds that value is the present worth of all future benefits expected from property ownership. This is the foundation of the income approach, where value equals the present value of projected future income and reversion.
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