Property Valuation
The principle of 'substitution' in real estate appraisal states that:
AA buyer will pay more for a unique property
BA buyer will pay no more for a property than the cost to acquire an equally desirable substitute✓ Correct
CAll properties in a neighborhood should sell for the same price
DValue is determined by future benefits
Explanation
The principle of substitution holds that a prudent buyer will pay no more for a property than the cost of acquiring an equally desirable and comparable substitute.
Related North Carolina Property Valuation Questions
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