Property Valuation
In New York, the 'principle of contribution' in appraisal means:
AEach physical component of a property contributes equally to its total value
BThe value of any part of a property is measured by how much it contributes to the total value of the property, not by its cost✓ Correct
CImprovements always add more value than they cost
DLand contributes more to value than improvements in urban areas
Explanation
The principle of contribution holds that the value of any component (such as an added room, pool, or renovation) is measured by how much it contributes to the overall value of the property — not by how much it costs. For example, a $50,000 swimming pool might only add $20,000 in value (negative contribution), while a $10,000 kitchen renovation might add $25,000 in value (positive contribution).
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