Property Valuation

What is 'contributory value' in real estate appraisal?

AThe total value of a property
BThe amount a specific feature adds to the total property value, which may differ from its actual cost✓ Correct
CThe value of improvements minus depreciation
DThe value of the land portion only

Explanation

Contributory value (also called the contribution principle) measures how much a specific feature actually adds to total property value as reflected in the market. A $50,000 pool addition might only add $15,000 in market value — the contributory value is $15,000, not the cost.

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