Property Valuation
The principle of contribution in Iowa appraisal states that:
AAll improvements add value equal to their cost
BThe value of a component is measured by how much it contributes to the overall value of the property, which may be more or less than its cost✓ Correct
CEvery improvement increases a property's value by at least 10%
DOnly land contributes to long-term property value
Explanation
The principle of contribution holds that the value of a property component (improvement, feature) is measured by its contribution to the whole property's value — not necessarily by its cost. Over-improvements may contribute less value than their cost if they exceed market standards.
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