Which principle of value suggests that a property's value can change based on future expectations?

The principle of value that indicates a property's worth can fluctuate based on future expectations is known as anticipation. This principle asserts that the value of a property is influenced by the expected future benefits that it can provide to its owner. For instance, if there are anticipated improvements in the local area, such as new infrastructure or an increase in demand for real estate, it can lead to a rise in property values as buyers anticipate greater future utility or profit from their investment.

By understanding anticipation, investors and appraisers can better evaluate how anticipated changes in the market or surrounding environment may affect the present value of a property. This principle is particularly significant in real estate, where projections about future trends and developments play a crucial role in investment decisions.