Property Valuation
What is the principle of contribution in Nevada real estate appraisal?
AEach owner's contribution to HOA dues determines their share of common area value
BThe value of any component is measured by how much it contributes to the total value of the property, not by the cost to add it✓ Correct
CImprovements always add their full cost to property value
DLand value contributes equally to all property types
Explanation
The principle of contribution states that an improvement's value is measured by what it adds to the total property value, not by its cost. In Nevada's market, a $50,000 pool may add only $15,000 in market value if buyers in that area don't highly value pools.
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