Valuation & AppraisalQuestion 63 of 120
The principle of anticipation holds that value is created by the expectation of:
a.Past sales prices
b.Original construction cost
c.Future benefits from the property
d.Assessed tax value
Explanation
The principle of anticipation states that value is based on the present worth of expected future benefits, such as income or appreciation. Investors buy property for what it will produce, not what it cost. This principle underlies the income approach.
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