An appraiser views the addition of an amenity to an apartment building under which appraisal principle?
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Substitution.
The principle of substitution holds that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute; while relevant to overall property valuation, it does not specifically address how an individual amenity or addition is evaluated within a property.
Contribution.
Anticipation.
Progression.
The principle of progression holds that a lower-value property benefits from being surrounded by higher-value properties; this is a neighborhood-level concept about the influence of surrounding properties, not about the value impact of an amenity added within a single property.
Why is this correct?
The principle of contribution is the correct answer because an appraiser evaluating an amenity — such as adding a swimming pool or fitness center to an apartment complex — is specifically asking: 'How much does this feature contribute to the total value of the property?' This is the textbook definition of the contribution principle as defined by the Appraisal Institute and used throughout the Uniform Standards of Professional Appraisal Practice (USPAP). The appraiser measures the amenity's value impact on the whole, not its standalone cost or replacement value.
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