{"id":6944,"date":"2018-02-22T05:45:01","date_gmt":"2018-02-22T05:45:01","guid":{"rendered":"http:\/\/www.realestatewords.com\/?page_id=6944"},"modified":"2020-10-27T15:08:26","modified_gmt":"2020-10-27T15:08:26","slug":"principle-of-substitution","status":"publish","type":"page","link":"https:\/\/www.realestatewords.com\/principle-of-substitution\/","title":{"rendered":"Principle of Substitution"},"content":{"rendered":"<h2>Principle of Substitution Definition<\/h2>\n<p>The Principle of Substitution means that a purchaser will not pay more for a property than they would be able to pay for a similar property of a lower price and of equal quality.<\/p>\n<h2>Explanation<\/h2>\n<p>The principal of substitution exists in real estate to bring attention to appropriate property pricing guidelines. This principle is heavily predicated on comparable properties and takes the idea of <a href=\"https:\/\/www.realestatewords.com\/comparables\/\">comparables<\/a> being important to pricing.<\/p>\n<p>The crux of the principle of substitution is that a property buyer will not pay more for a property if there is a cheaper property on the market that would also suit their needs and purposes. A higher price should be always justified by a significant advantage offered by a more expensive property in comparison to a cheaper property.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"shortcode_tabs horiz_tabs\"><div class=\"scT\"><ul class=\"scT-tab clearfix\"><li class='tS' style='width:100%;'><a>Expert Contributor<\/a><\/li><\/ul><div class='scTC scTC282' style='display:block;'><p>\n<p><strong style=\"font-size: 15pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10909 alignleft\" src=\"https:\/\/www.realestatewords.com\/wp-content\/uploads\/2020\/10\/Harry-Caruzo-Broker.jpg\" alt=\"Harry Caruso Broker\" width=\"150\" height=\"174\" \/>Harry Caruso<\/strong><\/p>\n<p><em>COMMERCIAL REAL ESTATE BROKER<\/em><\/p>\n<p>Expert contributor at RealEstateWords.com<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.realestatewords.com\/contributors\/harry-caruso\/\"><strong>View profile<\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<\/p><\/div><\/div><\/div>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10688 aligncenter\" src=\"https:\/\/www.realestatewords.com\/wp-content\/uploads\/2020\/03\/Real-Estate-Words-Contributor.png\" alt=\"Real Estate Words Contributor badge\" width=\"200\" height=\"168\" \/><\/p>\n<p style=\"text-align: center;\">Interested in becoming a contributor? Apply for our <a href=\"https:\/\/www.realestatewords.com\/contributor-program\/\">Expert Contributor Program<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Principle of Substitution Definition The Principle of Substitution means that a purchaser will not pay more for a property than they would be able to pay for a similar property of a lower price and of equal quality. Explanation The principal of substitution exists in real estate to bring attention to appropriate property pricing guidelines. [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/pages\/6944"}],"collection":[{"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/comments?post=6944"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/pages\/6944\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatewords.com\/wp-json\/wp\/v2\/media?parent=6944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}