Property Valuation
The principle of increasing and decreasing returns in Wyoming appraisal holds that:
AAdding improvements always increases value proportionally
BBeyond an optimal point, adding more investment to a property produces diminishing value returns✓ Correct
CValue always increases with investment
DReturn is measured solely by current market conditions
Explanation
The principle of increasing/decreasing returns recognizes that value increases with added improvements up to a point of diminishing returns. Over-improving a property (adding more than the market supports) produces diminishing value returns—the cost of the last addition exceeds the value it creates.
Related Wyoming Property Valuation Questions
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