Property Valuation
The principle of 'substitution' in real estate appraisal states that:
AA buyer will not pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
BProperties in the same neighborhood should be valued equally
CNew construction always sets the value ceiling
DMarket value equals replacement cost
Explanation
The principle of substitution is foundational to appraisal theory — it holds that a prudent buyer will not pay more for a property than the cost of acquiring an equally desirable substitute property.
Related Louisiana Property Valuation Questions
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