A bare lot would most likely be appraised based on which principle?

The principle that would most likely apply to the appraisal of a bare lot is the principle of highest and best use. This principle focuses on determining the most profitable, legally permissible, and physically possible use of a property that maximizes its value. When appraisers evaluate a vacant lot, they consider what the optimal use of that land would be, such as residential, commercial, or mixed-use development, and how that potential use influences the land's overall worth.

While the principle of substitution suggests that a property's value is defined by the cost of acquiring an equally desirable substitute property, it is less relevant for a bare lot where the absence of improvements means the highest and best use will significantly impact its value. The principle of contribution deals with how much value improvements add to a property but is not applicable to unimproved land. Lastly, the principle of anticipation relates to the future benefits expected from property ownership, which does not directly address the present value of an undeveloped lot. Hence, considering the highest and best use is essential in accurately appraising a bare lot, as it drives the value based on potential development or usage scenarios.