Property Valuation
In Alaska, the 'principle of regression' states that a high-value property surrounded by lower-value properties will:
AIncrease in value due to its superior quality
BBe pulled down in value toward the surrounding lower values✓ Correct
CRemain at its intrinsic value regardless of neighbors
DAppreciate faster than comparable properties in other neighborhoods
Explanation
The principle of regression holds that a higher-value property surrounded by lower-value properties will tend to decline in value toward the lower values. The inferior surroundings pull down the superior property. This is the opposite of the principle of progression.
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