Property Valuation
In South Carolina, the 'principle of substitution' in appraisal holds that:
AOne property can substitute for another in all situations
BA buyer will not pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CProperty values substitute for assessed values in tax calculations
DImprovements substitute for land in the cost approach
Explanation
The principle of substitution is foundational to all three appraisal approaches: a rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute. This justifies the use of comparable sales, cost to build, or income to set value.
Related South Carolina Property Valuation Questions
- In South Carolina, a property appraiser identifies the 'subject property' as:
- In South Carolina, what is 'going concern value'?
- In South Carolina, a 'drive-by' or 'exterior-only' appraisal is:
- In South Carolina, what is a 'mass appraisal' and how does it relate to property taxation?
- South Carolina's 'agricultural use value' assessment for farmland means:
- In South Carolina, what is 'highest and best use — as though vacant' analysis?
- In South Carolina, what is a 'market conditions adjustment' in an appraisal?
- In South Carolina, which type of value is determined for insurance purposes?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →