Property Valuation
In a West Virginia appraisal, the principle of contribution states that:
AEvery dollar spent on improvements adds a dollar to value
BThe value of a component is measured by how much it contributes to the total value of the property✓ Correct
CSimilar properties should be given equal weight in the sales comparison approach
DValue is determined by the most profitable use of the property
Explanation
The principle of contribution holds that the value of any component is measured by what its addition or loss contributes to the whole. A $30,000 pool addition may only contribute $10,000 to market value if buyers don't value pools equally.
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