Property Valuation
The principle of substitution in appraisal states that:
AA buyer will pay more for a property with special features
BNo informed buyer will pay more for a property than the cost of acquiring an equally desirable substitute✓ Correct
CProperties in the same neighborhood have the same value
DValue is determined solely by replacement cost
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 an equally desirable substitute. It underlies the sales comparison, cost, and income approaches.
Related Wyoming Property Valuation Questions
- The Uniform Standards of Professional Appraisal Practice (USPAP) requires Wyoming appraisers to:
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- In Wyoming, the three approaches to value always result in the same value conclusion:
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