easy · National Real Estate Exam valuation
During a beginner review, Kai Chen asks which statement best defines substitution.
Which definition should the learner use?
- A prudent buyer usually will not pay more than the cost of an equally desirable substitute.
- It means this approach is correct: A buyer ignores an equivalent lower-priced property.
- It is only an internal brokerage label with no legal, financing, valuation, or transaction effect.
- It means a party’s preferred result controls even when the definition’s required facts are absent.
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