Property Valuation
The principle of 'contribution' in real estate appraisal states that:
AAll improvements contribute equally to property value
BThe value of a component is measured by its contribution to the value of the whole property, not by its cost✓ Correct
CEvery dollar spent on improvements adds a dollar to value
DLandscaping contributes more to value than structural improvements
Explanation
The principle of contribution holds that the value of any component of a property is measured by how much it contributes to the total property value, not by its actual cost. An expensive improvement may contribute less to market value than it cost to install.
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