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Contributory Value

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Contributory Value
In real estate, a portion of the land or the improvements on it that increases its value. For example, the contributory value of the mother-in-law suite in a back yard may increase the value of a home by $25,000.


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The contributory value estimate found on the Fannie Mae Energy Report form from the third-party rater can be calculated by the Calcs Plus Software using the present value of the annual energy savings, the prevailing mortgage interest rate, and the anticipated life of the measure or savings.
The hedonic methodology-based on explicit estimates of the contributory values of a wide range of property characteristics-allows mortgage industry professionals and anyone interested in real estate market trends to track and price constant-quality houses over time at the zip code level.
The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.
 
 
 
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