The Real Estate Encyclopedia
Principle Of Substitution
Category - Real Estate Glossary - Real Estate Terminology
1.  An appraisal principle that holds that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution.2.  

The principle of substitution states that a buyer will not pay more for a property than the cost of an equally desirable alternative property.


References
 
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Real Estate Glossary - Real Estate Terminology
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