Property Valuation
The 'principle of contribution' in NC appraisal holds that:
AAll improvements add equal value
BThe value of a component is measured by its contribution to the whole property's value, not by its actual cost✓ Correct
CInvestments always increase property value by the amount invested
DBuyers contribute more to value in seller's markets
Explanation
The principle of contribution states that the value of a component part is measured by what it contributes to the whole — a $50,000 kitchen renovation may add only $20,000 to market value.
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