Value concepts
Principle of contribution
An improvement is worth what it adds to the whole, not what it cost
Spend $40,000 on a pool and the property may be worth $15,000 more. The difference is not an error — it is the principle. It underlies every question about over-improvement and every remodeling decision an owner ever regrets.
How the exam asks about it
Whenever a question gives you a cost and a value change and asks what principle is at work, this is it.
Related terms
Sitting the license exam? Find out what you actually know.
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