Which of the following is a basic principle of value?

• A. Market value
• B. Demand
• C. Scarcity
• D. Anticipation

Answer: (D)

Value is created by the expectation of future benefits. In appraisal and real estate thinking, anticipation means buyers value today what they expect to gain in the future—such as potential rental income, future use, or enjoyment. That future-oriented benefit is what gives a property its value, so anticipation is the fundamental principle at play.

Market value is a measurement—the price something would bring in an open market—not the idea that value itself rests on. Demand and scarcity describe conditions that influence how much people are willing to pay, but they aren’t the principle that explains why value exists. Anticipation, by focusing on the future benefits owners expect to receive, best explains why value has any worth at all.