Property Valuation
The principle of 'contribution' in real estate valuation states that:
AA property's value is determined by surrounding properties
BThe value of a component is measured by how much it adds to the whole property's value✓ Correct
CAdding improvements always increases value equally
DSupply and demand drive all property values
Explanation
The principle of contribution states that the value of any component of a property is equal to the amount it contributes to the total value of the property, not its cost.
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