Which appraisal principle states that a property's value is determined by the contribution of each of its components?

The principle that a property's value is determined by the contribution of each of its components is known as the Contribution principle. This principle emphasizes that the overall value of a property is influenced by the individual value added by each element or improvement within it. For example, if a property has a swimming pool, a patio, and new landscaping, the Contribution principle asserts that each of these features adds a specified amount to the overall value of the property based on their desirability and utility in the market.

The core idea is that not all improvements or components necessarily add equal value; some may significantly enhance the property's value while others may have minimal impact or even detract from it. Understanding this principle helps appraisers accurately assess a property's worth by analyzing how each component contributes to its total value.

The other terms presented are related to appraisal or real estate but do not encapsulate the specific idea articulated in the Contribution principle. Consideration is generally pertinent to the factors influencing market transactions, the Value principle refers more broadly to the overall worth of property in relation to similar properties, and Market analysis involves examining economic and market data to inform value assessments, but does not specifically address the impact of individual components.