Property Valuation
Regression, as an appraisal principle, means that:
AA property's value increases when surrounded by higher-valued properties
BA higher-value property's worth is pulled down by surrounding lower-value properties✓ Correct
CThe market value of a property always declines over time
DImprovements always add their full cost to the property's value
Explanation
The principle of regression states that a higher-value property placed among lower-value properties will tend to decrease in value. The opposite principle, progression, says a lower-value property benefits from being surrounded by higher-value properties.
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