Property Valuation
An appraiser in Morgantown, WV notes that home prices near West Virginia University have been rising rapidly due to strong rental demand from students. This is an example of which value principle?
ARegression
BAnticipation✓ Correct
CConformity
DContribution
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits. Buyers and investors pay more for properties near WVU in anticipation of strong future rental income and appreciation.
Related West Virginia Property Valuation Questions
- A West Virginia property owner hires an appraiser to estimate value for a potential sale. The 'scope of work' in the appraisal assignment refers to:
- External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
- The principle of substitution, which underlies all three approaches to value, states that:
- When a West Virginia appraiser identifies the 'as-improved' value and the 'as-vacant' value of a property, the higher value is:
- An appraisal of a West Virginia property that is being donated to a charity requires the appraiser to comply with:
- In a West Virginia comparative market analysis (CMA), a real estate agent adjusts comparable sales to account for differences with the subject property. If a comparable sold for $165,000 but lacks a deck valued at $8,000 that the subject has, the adjusted comparable value is:
- Regression and progression are real estate valuation principles. Regression means:
- A West Virginia property generates $36,000 in annual net operating income (NOI). If the market cap rate is 8%, what is the property's estimated value?
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →