 |
Investopedia explains 'Contributory Value'
Different features in real estate may have vastly differing contributory values. The contributory value of a backyard deck may be well below that of a secondary suite with a full kitchen. Contributory values may also be dependent on buyer preferences and the state of the economy.
For example, the pool in the backyard may have a contributory value of $10,000 for a family with teenage children, but may have scant contributory value for a family with toddlers. Likewise, enhancements such as granite countertops in the kitchen and state-of-the-art appliances may be a significant contributor to value in a red-hot real estate market, but their contributory value may be diminished in a sluggish housing market.
|