Property Valuation
The principle of anticipation in Utah real estate valuation states that value is based on:
AThe historical cost of the improvements
BThe present value of future benefits expected from ownership✓ Correct
CCurrent tax assessed value
DThe replacement cost of the improvements
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits—income, utility, or eventual resale proceeds. Buyers pay today for what they expect to receive in the future.
Related Utah Property Valuation Questions
- External obsolescence in Utah might be caused by:
- A before-and-after appraisal in Utah is used in:
- Net operating income (NOI) in real estate appraisal is income:
- A 'drive-by' or 'exterior-only' appraisal of a Utah property is typically ordered when:
- Functional obsolescence in an appraisal refers to a loss in value due to:
- Which approach is most reliable for appraising a new single-family home in a suburban Salt Lake County subdivision with many similar recent sales?
- In the income approach, what does effective gross income (EGI) represent?
- An appraisal adjustment for a superior comparable sale would result in:
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