Property Valuation
Regression in real estate appraisal means:
AProperty values decrease over time in all markets
BA higher-value property is pulled down in value by being surrounded by lower-value properties✓ Correct
CAppraisal values cannot exceed comparable sales
DThe cost approach always results in a lower value than the market approach
Explanation
The principle of regression states that the value of a higher-value property is diminished by the presence of surrounding lower-value properties. This is why overbuilding in a neighborhood can hurt value.
Related Arizona Property Valuation Questions
- In Arizona, the purpose of the URAR (Uniform Residential Appraisal Report) is to:
- The principle of anticipation in real estate appraisal holds that:
- A cost approach appraisal requires calculating depreciation, which includes:
- A leasehold interest in Arizona has value when:
- Scarcity as a principle of value means that:
- An Arizona appraiser who knowingly provides a fraudulent appraisal may face:
- In Arizona, a Comparative Market Analysis (CMA) prepared by a real estate agent is:
- Economic life of a building in the cost approach refers to:
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