The "principle of substitution" states that the value of a property is the same as what it would cost to buy a similar one on the open market. The "principle of contribution" means that improvements to a property only add to its value as much as they cost. The "principle of anticipation" suggests that the value of a property today is affected by what is expected to happen in the future. Finally, the "principle of balance" is the idea that a property is worth the most when there is the right amount of land and improvements.
These are questions that the above text answers:
1. What is the principle of substitution in property valuation?
2. How does the principle of contribution relate to property value?
3. What does the principle of anticipation suggest about property value?
4. What is the principle of balance in real estate?
9. What factors are considered in the principle of substitution?
10. How do improvements to a property relate to the principle of contribution?