Property Valuation
The principle of substitution states that a buyer will not pay more for a property than:
AThe seller's original purchase price
BThe cost of acquiring an equally desirable substitute property✓ Correct
CThe county's assessed value
DThe highest comparable sale in the area
Explanation
The principle of substitution is foundational to all three appraisal approaches. A buyer will not pay more for a property than the cost to acquire an equally desirable substitute, whether through purchase, construction, or investment.
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