Property Valuation
In South Dakota, which of the following best describes the 'principle of anticipation' in real estate valuation?
AFuture value is always less than current value
BProperty value is based on the present value of anticipated future benefits from ownership✓ Correct
CBuyers always wait for lower prices before purchasing
DAppraisers anticipate market changes by averaging historical data
Explanation
The principle of anticipation holds that value is based on what buyers anticipate receiving from a property in the future — future income, use, or resale value. The present value of anticipated future benefits is what determines current market value.
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