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

The principle of value that suggests a property's value may change based on future expectations is anticipation. This principle posits that the expected future benefits or income that a property can generate play a crucial role in determining its current value. Essentially, buyers and investors often assess not just the present attributes of a property but also the potential for future growth, income, or appreciation. For example, if there are plans for nearby development or infrastructural improvements, the anticipation of increased demand can elevate a property's value.

In contrast, other principles focus on different aspects of property valuation. Conformity relates to the idea that a property’s value is enhanced when it is consistent with the surrounding properties, while highest and best use considers the most profitable use of a property that is legally permissible, physically possible, and financially feasible. Contribution, on the other hand, deals with the impact that individual features or improvements have on the overall value of the property. Each of these principles plays an essential role in valuation, but anticipation specifically emphasizes the importance of future expectations in determining current value.