Valuation & AppraisalQuestion 88 of 120
The appraisal principle stating that a buyer will pay no more than the cost of an equally desirable substitute property is:
a.The principle of anticipation
b.The principle of substitution
c.The principle of regression
d.The principle of escheat
Explanation
The principle of substitution holds that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. It underlies the sales comparison approach. It reflects rational buyer behavior in a competitive market.
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