Property Valuation
What does the 'principle of anticipation' mean in Oregon real estate valuation?
AAppraisers should anticipate and predict future property values
BValue is influenced by the anticipated future benefits (income, use, enjoyment) a property will produce✓ Correct
CBuyers should anticipate higher prices in rising markets
DSellers should anticipate offers below list price in slow markets
Explanation
The principle of anticipation states that value is created by the expectation of future benefits — income, appreciation, use, or enjoyment. Buyers pay today's prices based on anticipated future cash flows and value. This principle underlies the income approach (capitalizing anticipated future income) and explains why properties in high-growth Oregon markets command premiums based on expected future appreciation.
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