Property Valuation
The principle of substitution in appraisal means:
AA property can be replaced with a similar property
BA buyer will not pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CAppraisers must use substitute comparable sales when primary sales are unavailable
DOne appraisal method can substitute for another
Explanation
The principle of substitution holds that the maximum value of a property is limited by the cost of acquiring an equally desirable substitute. It underlies all three appraisal approaches.
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