Property Valuation
In New Mexico, which principle states that the maximum value of a property is determined by what a buyer could pay for a similar substitute property?
APrinciple of contribution
BPrinciple of substitution✓ Correct
CPrinciple of anticipation
DPrinciple of conformity
Explanation
The principle of substitution holds that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. It is the foundation of the sales comparison and cost approaches.
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