The basis for adjustments in the sales comparison approach to value is based on which principle?

The correct answer, which is based on the principle of contribution, reflects the understanding that adjustments in the sales comparison approach are made to account for differences between the subject property and comparable properties. This principle posits that the value of a property can be affected by the addition or subtraction of certain features or amenities, thus guiding how much value should be attributed to these differences.

In the sales comparison approach, appraisers analyze recent sales of similar properties and make quantitative adjustments to ensure that these sales reflect the value of the subject property accurately. The principle of contribution helps appraisers determine how much each characteristic (like square footage, number of bedrooms, location, and condition) contributes to the overall value, allowing them to make the necessary adjustments.

The other principles mentioned—substitution, anticipation, and ascertainment—while relevant in different contexts of appraisal, do not specifically serve as the basis for making adjustments in the sales comparison approach. For example, the principle of substitution indicates that a buyer should not pay more for a property than what it would cost to purchase a similar one, which underlies the overall approach but does not directly inform the adjustment process for specific properties.