Which statement aligns with the principle of substitution concerning property purchases?

The principle of substitution is a fundamental concept in real estate that states a buyer will not pay more for a property than the price of a comparable property that offers similar utility or satisfaction. This principle suggests that when making a purchasing decision, buyers tend to consider the availability and prices of alternative properties before committing to a purchase.

The correct answer highlights the behavior of buyers in the market; they often evaluate various options to ensure they are making a sound investment. This process involves comparing different properties and their features, ultimately leading to an informed decision based on value and alternatives available in the market. By weighing these comparisons, buyers can ascertain the fair market value of a property.

The other statements do not accurately reflect the principle of substitution. For instance, the idea that homebuyers are willing to pay above the replacement cost contradicts the notion that buyers will seek the best value based on comparable alternatives. Similarly, while researching past sale prices is common, this practice does not directly illustrate the principle of substitution as it primarily reflects an assessment of historical data rather than the comparison of similar properties. Finally, claiming that buyers typically overvalue unique features without comparison suggests a lack of consideration for alternatives, which stands in contrast to the essence of the substitution principle.