Maryland Home Improvement PSI Practice Exam

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Prepare for the Maryland Home Improvement Test. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel on your exam!

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A couple expecting the value of their land to increase due to nearby commercial development is an example of which principle?

Substitution.
Contribution.
Conformity.
Anticipation.

The correct answer is: Anticipation.

The principle illustrated by the couple's expectation that the value of their land will increase due to nearby commercial development is the principle of anticipation. This principle suggests that the value of a property can change based on the expected future benefits associated with it. In this scenario, because the couple anticipates that commercial development will enhance the desirability and therefore the value of their land, it demonstrates how the expectation of future changes can influence current property values. This principle is often used in real estate to justify investment decisions, as buyers and investors are keen on how anticipated changes, like nearby infrastructure improvements or commercial growth, will impact property values over time. Thus, anticipating future demand or desirability can play a significant role in property valuation.