Property Valuation
The principle of substitution states that:
AA buyer will pay more for a unique property with no substitutes
BA buyer will not pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CProperties in the same neighborhood must have the same value
DNewer properties are always worth more than older ones
Explanation
The principle of substitution is fundamental to all three appraisal approaches: value cannot exceed the cost of obtaining an equally desirable substitute property. It underpins the sales comparison, cost, and income approaches.
Related Oklahoma Property Valuation Questions
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