Which appraisal principle explains how the integration of property components affects property value?

The principle that effectively addresses how the integration of property components affects property value is known as Contribution. This principle suggests that the value of any component of a property is determined by how much it adds to the overall value of the property when combined with other components. Essentially, it indicates that the value of a property is not just the sum of its individual parts but how those parts—such as infrastructure, land, and improvements—work together to enhance the overall value.

For example, if you have a piece of land and you add a building to it, the value of the property increases not just because of the building itself, but because the building enhances the utility and functionality of the land. If each component adds to the property's appeal and usability, this integration can significantly boost the total value. This principle is vital in real estate appraisal as it emphasizes the importance of complementary features and their synergy in contributing to property value.