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hello my name is John enzing Im a licensed and certified real estate instructor both in the State of Florida and Louisiana what Im going to bring to you today for your exam prep is the concept of value this comes out of your studies in the valuation appraisal section and were just going to Simply go over some terminologies that youre going to be responsible for on the state exam and you need to know these Concepts as well okay all right lets go ahead and start principles of value first one were going to look at is called the principle of substitution this is a concept and a theory that says the maximum price is going to be set from a property that has already been sold as the the maximum acceptable of the one perhaps youre putting an offer in for or if youre listing a property okay in other words if youve got homes that have sold around you in the area that youre looking and these homes have averaged a certain price range the one youre making an offering on youre not going
