Property Valuation
In South Carolina, which appraisal principle states that there is a limit to how much adding improvements will increase a property's value?
APrinciple of substitution
BPrinciple of increasing and decreasing returns✓ Correct
CPrinciple of conformity
DPrinciple of contribution
Explanation
The principle of increasing and decreasing returns (also related to balance and contribution) holds that initially, adding improvements increases value proportionally (increasing returns), but there is a point after which additional investment yields diminishing returns — adding less value than it costs.
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