Property Valuation
In Maine, the principle of 'substitution' in appraisal states that:
AA property is worth more than comparable properties
BA buyer will not pay more for a property than the cost to acquire an equally desirable substitute✓ Correct
CAll properties in a neighborhood should be priced the same
DReplacement cost sets the minimum value
Explanation
The principle of substitution holds that a rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute property in the market. This is the foundation of the sales comparison approach.
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