Principles of Real EstateCâu 11 / 100
Under the principle of substitution, a buyer will pay no more for a property than:
a.The cost of the most expensive comparable in the market
b.The assessed value for tax purposes
c.The original construction cost
d.The cost of acquiring an equally desirable substitute property
Giải thích
The principle of substitution holds that value is set by the cost of an equally desirable alternative. This idea underlies the sales comparison approach to appraisal. A rational buyer will not overpay when a comparable substitute is available for less.
Luyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Which of the following describes an encumbrance on real property?
- A physical feature of a property that reduces its value, such as an outdated floor plan, is an example of:
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- A metes and bounds legal description relies on:
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- Which type of depreciation is generally considered incurable?
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