Which principle asserts that a buyer will not pay more for a property than for a comparable one?

The principle that asserts a buyer will not pay more for a property than for a comparable one is the Principle of Substitution. This principle is foundational in real estate appraisal and economic theory, indicating that a rational buyer will consider the cost of acquiring a similar or comparable property before making a purchase decision. If an identical property is available for a lower price, the buyer is unlikely to pay a premium for a different one when they can achieve the same benefits for a lesser amount.

This principle helps to establish a baseline value for properties by using the market prices of comparable properties, ensuring that the value of property is aligned with market expectations. It is a crucial guideline for assessors when determining property values and informs the decisions of both buyers and sellers in the real estate market.

The other concepts, while relevant in different contexts, do not accurately cover the same aspect of property value determination as the Principle of Substitution does. For example, the Principle of Surplus Productivity relates to the returns from property improvements, while the Principle of Progression deals with influences on property values based on surrounding properties. The Principle of Contribution focuses on how much value a particular property feature adds to the overall property. Each of these principles has its own distinct application and does not address the comparison