What term is defined as the present worth of revenue or other benefits expected in the future?

• A. Conformity
• B. Anticipation
• C. Substitution
• D. Progression

Answer: (B)

Anticipation explains why a property's value today reflects the present value of the revenue or benefits it is expected to generate in the future. In appraisal practice, buyers are willing to pay more today if they expect future rents, incomes, or other advantages from ownership; these expected benefits are discounted back to the present to determine current value. The other terms describe different relationships—conformity relates to market fit, substitution to the idea that a buyer will choose a comparable substitute, and progression to the idea that lower-valued properties can gain value when located in a higher-valued area—but they don’t define the present value of future benefits.