Property ValuationAdvancedDelaware Exam
The principle of 'regression' in property value means:
AProperty values decline over time
BA higher-value property loses value due to proximity to lower-value properties
CImprovements that exceed market standards will not add their full cost to property value
DBoth B and CCorrect
Why Both B and C Is Correct
Answer D: Both B and C
Regression has two related meanings: (1) a superior property is dragged down in value by inferior neighboring properties, and (2) improvements that over-improve a property relative to the market will not return their full cost in added value.
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.
Related Delaware Property Valuation Questions
- What is 'correlation' (reconciliation) in the context of a Delaware appraisal report?Property Valuation
- In Delaware, who is qualified to perform a formal real estate appraisal for a federally related transaction?Property Valuation
- The principle of 'progression' in real estate value means:Property Valuation
- In Delaware, what is 'change' as a principle of value in real estate appraisal?Property Valuation
- What is the purpose of the 'three approaches to value' in Delaware appraisal practice?Property Valuation
- What is a 'restricted use appraisal' (or limited appraisal) in Delaware?Property Valuation
- What is 'economic rent' versus 'contract rent' in a Delaware income property analysis?Property Valuation
- What is 'prospective value' in a Delaware appraisal?Property Valuation
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →