Valuation & AppraisalPregunta 97 de 120

Under the principle of regression, a high-value home located among lower-value homes will tend to:

a.Increase the value of all neighbors to its level
b.Have no effect on its own value
c.Be pulled downward in value by the lesser surrounding properties
d.Automatically become the neighborhood standard

Explicación

The principle of regression states that the value of a superior property is adversely affected by the presence of inferior surrounding properties. Conversely, progression holds that a lesser property benefits from higher-value neighbors. Both relate to conformity.

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