Principal Of Substitution

Principal Meridian Reading Principal Of Substitution 1 minute Next Private Mortgage Insurance (pmi)

Definition:   an economic law of value; no prudent buyer will pay more for a property than the cost of an equally desirable replacement property

Pronunciation:    \ˈprin(t)-s(ə-)pəl\ \ˌsəb-stə-ˈtü-shən\

Used in a Sentence:   The principal of substitution sets an upper limit of value for a property by establishing the cost of acquiring an equally desirable substitute property on the open market.

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