Property Valuation
The 'principle of substitution' in Maine real estate appraisal states that:
AProperty value increases when comparable properties are sold nearby
BA buyer will not pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CAppraisers can substitute one approach for another
DSellers must substitute a defective property with a comparable one
Explanation
The principle of substitution is the foundation of the sales comparison and cost approaches: a rational buyer will pay no more for a property than the cost to acquire a substitute property of equal utility.
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