Property Valuation
What is the principle of substitution in Kansas real estate appraisal?
AA buyer will pay more for a unique property with no substitutes
BA buyer will pay no more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CProperties in the same neighborhood have equal value
DThe replacement cost always equals market value
Explanation
The principle of substitution holds that the maximum value of a property is set by the cost of acquiring an equally desirable and useful substitute property.
Related Kansas Property Valuation Questions
- A Kansas appraiser finds that a property's neighborhood is in a 'stable' stage of its life cycle. This means:
- In Kansas, when an appraiser reports the 'as-improved value,' they are estimating the value of:
- In Kansas commercial real estate, 'absorption rate' refers to:
- In the cost approach, the formula for value is:
- Economic obsolescence (external obsolescence) is caused by:
- In a Kansas appraisal, 'arm's length transaction' means:
- A Kansas property's 'income multiplier' approach using an annual gross income of $24,000 and a GIM of 10 yields an estimated value of:
- What is a comparative market analysis (CMA) in Kansas real estate?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →