Property Valuation
The 'principle of contribution' in Michigan appraisal states that:
AAny improvement adds its full cost to the property's value
BThe value of a component is measured by how much it contributes to the total property value, not by its cost✓ Correct
CAll improvements must meet current building codes to have value
DImprovements must be approved by the local assessor
Explanation
The principle of contribution holds that the value of any property improvement is measured by its contribution to the total property value, not by the cost of the improvement itself. A $30,000 kitchen remodel may add only $20,000 to market value.
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