valuation

anticipation

Anticipation is the appraisal principle that value is created by the expectation of future benefits from owning a property, such as income, use, or resale gain. It is the basis of the income approach, which converts expected future income into a present value. Expected changes, like a new highway or shopping center, can raise or lower values before they actually happen.

Exam tip
Anticipation looks to the future and underlies the income approach. Substitution, by contrast, underlies the sales comparison approach.
Example
Land values near a planned train station rise as soon as the project is announced, reflecting the principle of anticipation.

Related terms & state variants

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Last verified: 2026-10-23