What term describes the amount of market value added to a property by an addition or improvement?

The term that describes the amount of market value added to a property by an addition or improvement is "Contribution." This principle is rooted in the idea that the value of any property may increase when enhancements or changes are made, measured on the basis of how much those improvements positively affect the property’s overall value in the market.

For instance, if a homeowner adds a new bathroom or renovates a kitchen, the increase in property value attributed to these specific improvements exemplifies the concept of contribution. The value gained reflects the benefit that the addition or improvement brings to the overall property, essentially translating the investment into tangible market value.

In contrast, other terms relate to different concepts: a "Contract" involves an agreement between parties that outlines obligations, "Conveyance" refers to the act of transferring property from one party to another, and a "Counteroffer" is a response to an offer that modifies the terms. These concepts do not precisely capture the notion of value addition through property improvements, reinforcing why contribution is the correct terminology in this context.