What does the Principal of Contribution explain about property attributes?

The Principle of Contribution is a key concept in real estate valuation, and it particularly addresses how individual attributes of a property impact its overall value. The correct answer highlights that property attributes relate to the value added to the overall value of the property.

When assessing a property, appraisers consider how specific features—such as a new roof, upgraded kitchen, or additional bathrooms—contribute to the property's market value. If an attribute adds value that exceeds its cost, it aligns with the principle that features should enhance the overall worth of the property. In essence, attributes that increase utility, desirability, or functionality of the property will generally lead to an increase in the property’s market value.

For example, if a homeowner invests in renovating an outdated kitchen, this may significantly enhance the property's attractiveness to potential buyers, thus increasing its market price. The focus of the Principle of Contribution is on how individual enhancements or features contribute positively to the overall market perception and assessed value of a property.