Property Valuation
When appraising a historic rowhouse in Philadelphia, the appraiser identifies that the plaster walls and ornate details are a market preference among buyers in that neighborhood. This represents:
AFunctional obsolescence due to outdated construction methods
BContribution value — the historic features contribute positively to market value✓ Correct
CExternal obsolescence from the historic designation
DPhysical deterioration that must be depreciated
Explanation
Contribution is an appraisal principle stating that the value of any component is what it adds to (or subtracts from) the whole property's value. In historic Philadelphia neighborhoods, original ornate details and plaster walls may be highly valued by buyers, contributing positively to market value.
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