Property Valuation
The principle of progression in real estate valuation states that:
AProperty values always increase over time
BA lower-valued property is enhanced by being located among higher-valued properties✓ Correct
CA higher-valued property is diminished by lower-valued neighboring properties
DProperty improvements always add more value than their cost
Explanation
The principle of progression holds that a property of lower value benefits from being located among properties of greater value. The opposite (regression) holds that a higher-value property is negatively impacted by lower-value neighbors.
Related Arkansas Property Valuation Questions
- The principle of substitution states that a buyer will not pay more for a property than:
- Net operating income (NOI) is calculated as:
- A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
- The principle of PROGRESSION states that:
- The principle of BALANCE in appraisal holds that:
- The principle of HIGHEST AND BEST USE means the use that is:
- Economic life of an improvement refers to:
- Accrued depreciation in the cost approach equals:
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