Property ValuationIntermediateDelaware Exam
The principle of 'progression' in real estate value means:
AProperty values increase over time
BA lower-value property is enhanced by being located near higher-value propertiesCorrect
CValues decline from their peak as the property ages
DCommercial properties appreciate faster than residential properties
Why A lower-value property is enhanced by being located near higher-value properties Is Correct
Answer B: A lower-value property is enhanced by being located near higher-value properties
The principle of progression holds that the value of an inferior property is positively influenced by proximity to superior properties. The 'worst house on the best block' benefits from surrounding higher-value homes.
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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