What is a key consideration when applying the economic principle of anticipation in real estate?

The economic principle of anticipation in real estate is centered on the idea that value is influenced by the expected future benefits associated with a property. This principle suggests that individuals make decisions based on their expectations of future events and benefits, such as increases in property value, anticipated income from rental or operational activities, or planned developments in the area that could enhance the property's desirability and, consequently, its value.

By focusing on potential future benefits, property assessors and investors can better evaluate a property's worth, taking into account how future circumstances might affect demand and pricing. This forward-looking approach is essential in real estate, as it guides both buyers and sellers in making informed decisions based on where they believe the market is headed, rather than solely relying on historical data or current conditions.