Property Valuation
The 'principle of contribution' in Wyoming real estate appraisal means:
AEach feature of a property is valued independently
BThe value of a component is measured by how much it contributes to the overall property value, not by its cost✓ Correct
CImprovements always add value equal to their construction cost
DLand contributes equally to value as improvements
Explanation
The principle of contribution states that a component's value equals the amount it contributes to the whole property's value—not necessarily its cost. A swimming pool may cost $50,000 to install but contribute only $30,000 to the property's value in a cold Wyoming climate.
Related Wyoming Property Valuation Questions
- In Wyoming, an upward adjustment to a comparable sale indicates:
- External (economic) obsolescence that affects a Wyoming property due to a decline in oil prices impacting the local economy is considered:
- In the income capitalization approach, the capitalization rate is determined by:
- Paired sales analysis in the sales comparison approach is used to:
- In the income approach, Net Operating Income (NOI) is calculated as:
- In Wyoming, the 'principle of balance' in real estate appraisal holds that:
- A Wyoming appraisal uses a 'cost-to-cure' approach for depreciation. This method is used when:
- A Wyoming buyer's agent presents their buyer with a CMA showing that list prices in the area are consistently 5% above final sale prices. This suggests:
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