Property Valuation

The principle of progression in real estate means that:

AA lower-valued property is pulled up in value by being located near higher-valued properties✓ Correct

BProperty values always increase over time

CLarger properties are always more valuable than smaller ones

DA well-maintained property retains its value

Explanation

The principle of progression states that a lesser property tends to increase in value due to proximity to higher-value properties.

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.

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