Property Valuation
Which principle of value states that overimprovement of a property reduces value relative to the investment made?
APrinciple of conformity
BPrinciple of contribution✓ Correct
CPrinciple of progression
DPrinciple of regression
Explanation
The principle of contribution holds that the value of any component of a property is measured by how much it contributes to overall value. An overimprovement may cost more than it adds to value — the improvement contributes less than its cost.
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