RECA Fundamentals Practice Exam 2025 – Complete Study Resource

The Principal of Contribution in property evaluation is a key concept that determines how the values of different components or features of a property contribute to its overall market value. When applying this principle, appraisers assess how much a particular feature, whether it be an upgrade or improvement, adds to the property’s valuation, considering the marginal benefit it provides.

This principle supports the reasoning behind making adjustments to the sale prices of comparable properties. If one property has certain enhancements or lacks certain features relative to another comparable property, appraisers use the principle of contribution to adjust the valuation. For instance, if one property has a swimming pool and another does not, the appraiser will adjust the comparable property's value to account for the contribution of the pool, thereby ensuring that the comparison reflects the true worth of each property.

This is why the option that references adjustments made to the sale prices of comparable properties aligns with the Principal of Contribution, as it directly deals with evaluating how different aspects of properties contribute to their established market value.