Property Valuation
Which appraisal concept holds that a property's value is influenced by the values of surrounding properties?
AProgression and regression✓ Correct
BSubstitution
CContribution
DBalance
Explanation
The principles of progression and regression describe how a property's value is influenced by neighboring properties. A lower-value home benefits from proximity to higher-value homes (progression); a higher-value home is held down by inferior neighbors (regression).
Related Arizona Property Valuation Questions
- The income capitalization approach is MOST reliable for valuing:
- In the sales comparison approach, an appraiser makes 'adjustments' to comparable sales. If a comparable sale has a pool and the subject property does NOT, the appraiser would:
- External obsolescence affecting an Arizona property's value might be caused by:
- In the income approach, if an Arizona property has an NOI of $72,000 and sold for $900,000, what is the overall capitalization rate?
- In Arizona, the URAR form used for residential appraisals requires the appraiser to report the 'neighborhood' based on:
- The principle of anticipation in real estate appraisal holds that:
- An appraiser values an Arizona commercial property using a cap rate of 7% and an NOI of $63,000. What is the indicated value?
- An Arizona residential appraiser uses the sales comparison approach and finds the subject property has a pool that no comparable sale has. The appraiser should:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →