Property Valuation
Which principle of value states that the value of a property is determined by what it would cost to acquire an equally desirable substitute property?
APrinciple of contribution
BPrinciple of substitution✓ Correct
CPrinciple of anticipation
DPrinciple of conformity
Explanation
The principle of substitution holds that the maximum value of a property is set by the cost of acquiring an equally desirable substitute. This principle underlies all three appraisal approaches: a buyer will not pay more for a property when a comparable one can be had for less.
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