Property Valuation
Which principle explains why a South Dakota property owner who adds an in-ground swimming pool may not recover the full cost in the sales price?
APrinciple of substitution
BPrinciple of progression
CPrinciple of contribution✓ Correct
DPrinciple of anticipation
Explanation
The principle of contribution states that an improvement is worth only what it contributes to the property's total value, not its cost. A pool may cost $50,000 but only add $20,000 in value in a South Dakota market.
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