What is the outcome of applying the Principle of Anticipation?

The Principle of Anticipation is rooted in the idea that the value of a property is influenced by the benefits and future potential that it is expected to generate. When prospective buyers foresee positive outcomes or anticipated benefits from a property, such as appreciation in value, rental income, or improved livability, they are motivated to purchase. This expectation creates a sense of urgency and drives resale activity as individuals and investors seek to take advantage of these benefits before they are fully realized.

Motivated resale activity based on projected benefits reflects the proactive behavior of buyers and sellers who adjust their strategies according to their expectations of future market conditions. Anticipation not only influences buyer decisions but also affects overall market dynamics, as properties that are perceived to have greater future value are more likely to be actively traded.

In contrast, the focus on present availability, stagnation in a fluctuating market, and uniform pricing across all property types do not capture the essence of how the Principle of Anticipation works. Instead, they suggest conditions that lack the dynamism and forward-looking perspective that anticipation brings to real estate transactions.