An appraiser views the addition of an amenity to an apartment building under which appraisal principle?
Question & Answer
Review the question and all answer choices
Substitution.
Substitution is incorrect because it relates to buyers not paying more for a property than the cost of acquiring an equivalent substitute property. This principle doesn't address how future benefits from amenities affect value.
Contribution.
Contribution is incorrect because while amenities do contribute to value, this principle specifically deals with how individual components add to or detract from the overall value, rather than focusing on future benefits.
Anticipation.
Progression.
Progression is incorrect because it refers to the phenomenon where a lesser property's value increases due to proximity to higher-valued properties, not the impact of amenities on value.
Why is this correct?
Anticipation is correct because the principle specifically addresses how future benefits or income potential from an amenity affects current property value. Appraisers evaluate amenities based on the additional income or utility they are expected to generate in the future.
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