Property Valuation
The 'principle of anticipation' in Virginia real estate appraisal means value is based on:
APast sales of the property
BThe present value of expected future benefits from owning the property✓ Correct
CThe cost to rebuild the improvements
DThe current assessed value
Explanation
The principle of anticipation holds that value reflects the present worth of expected future benefits (income, appreciation, use). This principle underlies the income capitalization approach.
Related Virginia Property Valuation Questions
- In Virginia, the 'effective date' of an appraisal is:
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- When appraising a special-use property like a church in Virginia, the appraiser would most likely use which approach?
- A Richmond area appraiser is performing a retrospective appraisal. This means the appraisal:
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- In Virginia, the 'Band of Investment' technique is used in the income approach to:
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