Property Valuation
The principle of substitution in Utah real estate states that:
AA buyer will always choose the most expensive property available
BA buyer will pay no more for a property than the cost of acquiring a comparable substitute✓ Correct
CProperties can be replaced at any time for the same cost
DAll properties in a neighborhood should have equal value
Explanation
The principle of substitution holds that an informed buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. It underlies the sales comparison and cost approaches.
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