Property Valuation
A Colorado buyer pays $375,000 for a home where comparable sales support a value of $350,000. The $25,000 overpayment is likely due to:
AThe principle of conformity
BSpecial purchaser value — personal reasons making the property worth more to this specific buyer✓ Correct
CInvestment value calculation error
DThe principle of substitution
Explanation
When a buyer pays more than market value, it often reflects special purchaser value — personal circumstances or synergies that make the property worth more to that specific buyer than to the typical market participant.
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