Property Valuation
In Massachusetts, the 'principle of substitution' holds that:
AAll comparable properties should have the same value
BA buyer will not pay more for a property than the cost of an equally desirable substitute✓ Correct
CLand value always equals at least 20% of total property value
DImprovements add dollar-for-dollar value to a property
Explanation
The principle of substitution is the foundation of the sales comparison approach: a buyer will not pay more for a property than the cost to acquire a comparable alternative. This principle limits the maximum value of any property based on available market alternatives.
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