The Principle of Contribution defines value as:

The Principle of Contribution indicates that the value of a property is determined by the utility or contribution of each individual component to the overall value of that property. This means any improvements or features of a property are only as valuable as the enhancement they provide to the total property value. For example, adding a swimming pool may enhance the property value, but if it does not contribute significantly to the appeal or functionality for potential buyers in that market, its overall value may be limited.

Conversely, other options provide a more rigid or limited perspective. The idea of value being directly related to original cost does not take into account how market conditions or the condition of the property itself can affect value over time. Similarly, determining value solely by market demand overlooks the specific contributions of features and characteristics of the property. The notion of fixed and unchangeable value is counter to the reality that property value can fluctuate based on various factors, including economic conditions and changes in buyer preferences. Thus, focusing on the contribution of individual features provides a nuanced understanding of value that is critical in real estate appraisal and investment decisions.