Value concepts
Principle of anticipation
Value comes from the benefits a buyer expects to receive in the future
A buyer pays for what a property will do for them from the purchase onward — income, use, an expected gain — and not for what it has already done for someone else. It is the principle the entire income approach rests on, since capitalising an income stream is anticipation written as arithmetic, and it is why the announcement of a transit line moves prices long before any track is laid.
How the exam asks about it
It appears in "which principle is illustrated" items, set against substitution and contribution. Any fact pattern phrased around future benefits, expectations or a change still to come is anticipation.
Quick check: Principle of anticipation
One question. Pick an answer to see the explanation.
Which term is being defined: “Value comes from the benefits a buyer expects to receive in the future”?
Related terms
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