Which principle is most likely used to appraise a bare lot?

The principle of substitution is essential in appraising a bare lot because it is rooted in the premise that a property's value is influenced by the cost to acquire an equally desirable substitute. In the context of a vacant lot, an appraiser will assess the price of comparable lots that are similar in location, size, and other characteristics to determine its value. If a buyer could purchase a similar lot for a lower price, it would decrease the appraised value of the lot in question.

This principle is specifically important for raw land or bare lots where there are no income-producing factors or unique characteristics to consider beyond the land itself. By evaluating similar properties that could serve as substitutes, the appraiser can establish a fair market value based on what buyers in the market are willing to pay.

In contrast, while concepts like conformity, progression, and the dynamics of supply and demand are relevant in broader real estate appraisals, the principle of substitution stands out as the most applicable for determining the value of a bare lot, making it the correct choice for this question.