Property Valuation
The principle of substitution states that a buyer will pay no more than:
AThe appraised value as determined by a licensed appraiser
BThe cost to acquire an equally desirable substitute property✓ Correct
CThe assessed value plus 10%
DThe seller's asking price
Explanation
The principle of substitution holds that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute — the foundation of the sales comparison and cost approaches.
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