Property Valuation
An appraiser in Montgomery County Pennsylvania notes that a new highway interchange has been announced near a commercial property. This is a:
AFunctional obsolescence factor
BMarket condition affecting value through the principle of anticipation✓ Correct
CExternal obsolescence requiring an immediate downward adjustment
DIrrelevant to current value analysis
Explanation
The principle of anticipation recognizes that buyers pay for expected future benefits. An announced highway interchange may increase a commercial property's value if it improves accessibility and attracts development. The appraiser should research market evidence of how similar announcements have affected comparable property values.
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