Property Valuation
The 'principle of contribution' in Vermont appraisal states that:
AAll improvements add their full cost to a property's value
BThe value of any component is measured by how much it contributes to the total value of the whole property✓ Correct
CLand always contributes more value than improvements
DRenovations contribute 100% of their cost to market value
Explanation
The principle of contribution holds that the value of a property component is equal to its contribution to the total property value — not its cost. For example, a $50,000 garage addition might only add $30,000 to a Vermont home's market value if similar homes in the area don't typically have garages.
Related Vermont Property Valuation Questions
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