Property Valuation
Regression is an appraisal principle that states:
AThe value of a superior property is pulled up by surrounding inferior properties
BThe value of a superior property is pulled down by surrounding inferior properties✓ Correct
CImprovements always add value equal to their cost
DValue increases over time due to inflation
Explanation
The principle of regression holds that a higher-value property surrounded by lower-value properties will have its value pulled downward toward the surrounding properties.
Related Arkansas Property Valuation Questions
- Comparable sales selected by an appraiser should be:
- Economic obsolescence due to changes in nearby land use is considered 'incurable' because:
- In the sales comparison approach, the appraiser should give the most weight to:
- A property has an NOI of $36,000 and a cap rate of 8%. What is its estimated value?
- If a home in a neighborhood of $200,000 houses is improved with a $100,000 addition, its value will likely:
- A property has 10 units renting at $800/month each. All units are currently occupied. Operating expenses are $40,000 annually. What is the NOI?
- The gross rent multiplier (GRM) is calculated by:
- Effective age differs from actual (chronological) age in that effective age:
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