Tennessee Real Estate License Exam Practice Question
After announcing that a new city park will soon be developed, homes in the immediate area experience a rise in value. This is an example of which of the following principles of value?
Correct Answer: C
Rationale: The principle of anticipation explains how the expected future benefits from a new city park lead to an increase in home values. Buyers anticipate enhanced quality of life and recreational opportunities, driving demand.
Option A, change, refers to shifts in market conditions but does not specifically address future expectations. Option B, contribution, focuses on how a property's value is influenced by its individual features, not external developments. Option D, highest and best use, pertains to the most profitable use of a property, which is not directly relevant to the anticipation of future benefits from nearby amenities.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now