Which term is used to describe an improvement that increases the market value of a property?

The term that describes an improvement that increases the market value of a property is known as "contribution." This concept centers around how additional features or enhancements to a property can elevate its overall value. For example, adding a new bathroom or upgrading the kitchen can significantly enhance the property's appeal and market price due to the added benefits these improvements provide to potential buyers.

In real estate, contribution reflects the principle that the value of any improvement is determined by the extent to which it adds to the property's worth, rather than merely the cost incurred to make the improvement. If an improvement yields a greater increase in value than its cost, it is considered a valuable contribution to the property.

Understanding this term is crucial for anyone involved in real estate, as it helps in assessing the potential return on investment for property enhancements. It also guides buyers and sellers in making informed decisions regarding property improvements and market pricing.

The other terms—contract for deed, contingency, and conveyance—relate to different aspects of real estate transactions and do not directly define improvements that enhance property value. A contract for deed involves financing arrangements, contingency refers to conditions in contracts, and conveyance relates to the transfer of ownership. Therefore, they do not apply in the context of improvements that impact market value