Property Valuation
The principle of progression in real estate means:
AProperty values always increase over time
BA lower-value property benefits from being surrounded by higher-value properties✓ Correct
CImprovements to a property always increase its value
DA property's value increases with each renovation
Explanation
The principle of progression holds that a lower-value property's worth is enhanced by its proximity to higher-value properties. (The opposite is regression — a higher-value property diminished by nearby lower-value properties.)
Related California Property Valuation Questions
- What is a capitalization rate (cap rate)?
- Which type of depreciation results from factors outside the property, such as proximity to a freeway or an industrial plant?
- The principle of anticipation states that value is:
- The 'highest and best use' of a property is defined as the use that meets all four of which criteria?
- Gross Rent Multiplier (GRM) is calculated as:
- What is 'depreciation' in real estate appraisal?
- The principle of 'anticipation' in real estate valuation states that:
- External obsolescence (economic obsolescence) is caused by:
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