What would generally happen to the value of a superior property being compared to an inferior property?

When comparing a superior property to an inferior property, the value of the superior property is generally expected to increase. This can be attributed to several factors inherent to the characteristics of the superior property, such as better location, enhanced amenities, higher quality construction, and overall more desirable features which make it more attractive to potential buyers.

In real estate appraisal, the principle of substitution plays a crucial role. This principle states that a property's value is influenced by the cost of acquiring an equivalent substitute if it were available on the market. Because the superior property offers advantages that the inferior property does not, buyers are typically willing to pay more for it.

Moreover, the market dynamics often dictate that superior properties hold their value better and appreciate over time compared to inferior properties. As such, the presence of demand will likely drive prices higher for the superior property, affirming its value relative to the inferior property. This relationship helps to establish a framework in property valuation that recognizes the desirability and appeal of higher-quality options in the marketplace.