Property Valuation
The principle of PROGRESSION states that:
AA property's value increases over time
BA lower-value property benefits from being near higher-value properties✓ Correct
CAll properties in a neighborhood reach value equilibrium
DImprovements always add value equal to their cost
Explanation
The principle of progression holds that a lower-value property benefits from proximity to higher-value properties—the 'worst' house in a desirable neighborhood is worth more than it would be elsewhere.
Related Arkansas Property Valuation Questions
- Physical depreciation that cannot be economically repaired is classified as:
- A broker price opinion (BPO) differs from an appraisal in that a BPO:
- An appraisal with a retrospective (historical) effective date is used in which context?
- When analyzing a sale for use as a comparable, the appraiser should first verify that it was an:
- The term 'as improved' in an appraisal refers to:
- If a home in a neighborhood of $200,000 houses is improved with a $100,000 addition, its value will likely:
- The principle of balance in appraisal states that:
- When a comparable sale was a foreclosure or distressed sale, the appraiser should:
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