Which term describes the value attributed to a property feature?

• A. Contribution
• B. Capitalization
• C. Demand
• D. Balance

Answer: (A)

The main idea here is how much a specific feature adds to a property's value. The value attributed to that feature is called its contribution—the increase in the property's overall value that can be tied to having that feature present. For example, if adding a modern kitchen raises the sale price from 300,000 to 340,000, the kitchen’s contribution is the 40,000 increase, assuming other factors stay the same. This captures how much value the feature itself adds beyond the baseline property.

Capitalization is about converting income into value, typically for income-producing properties, not about assigning a portion of value to a single feature. Demand describes buyers’ desire in the market, not the specific value a feature adds. Balance isn’t the term used to describe the value contributed by a feature.