Property Valuation
In Ohio, which principle states that adding a 5th bedroom to a 4-bedroom home may not increase the property's value proportionally because the neighborhood doesn't support it?
APrinciple of substitution
BPrinciple of increasing and decreasing returns✓ Correct
CPrinciple of conformity
DPrinciple of balance
Explanation
The principle of increasing and decreasing returns states that adding improvements eventually produces diminishing (or negative) returns when the property is already at or beyond what the market supports for that neighborhood.
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