Property Valuation
The principle of anticipation in Washington real estate valuation holds that:
APast sales determine future value
BProperty value reflects the present value of expected future benefits✓ Correct
CAnticipated repairs reduce current value dollar for dollar
DFuture zoning changes automatically increase current value
Explanation
The principle of anticipation states that value is created by the expectation of future benefits. Buyers pay prices based on anticipated future income, appreciation, use, and enjoyment of the property.
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