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