A pool cost $25,000 to install on a property, but only adds $15,000 to the appraised value of the property. This situation exemplifies which appraisal principle?

The correct choice highlights the concept of the Contribution Appraisal principle, which expresses the relationship between the cost of a property improvement and the increase in value it provides to the property. In this scenario, although the installation of the pool cost $25,000, it only adds $15,000 to the appraised value, indicating that the pool does not contribute its full cost to the overall property value. This reflects the idea that improvements to a property may not yield returns equivalent to their costs, illustrating the limits of contribution to value.

The other principles provide different insights into appraisal but do not exemplify this particular situation. The Substitution Principle revolves around the idea that the value of a property is determined by the cost to acquire a comparable substitute property, which is not applicable in this context. The Anticipation Principle involves estimating value based on future benefits, while the Regression Principle refers to a decrease in property value due to surrounding properties that are of lower value, neither of which aligns with the specific situation of the pool's cost versus its contribution to value.