Property Valuation
When Florida property values in a specific neighborhood are declining, an appraiser applying the principle of 'regression' would expect that:
AA high-value home's value is enhanced by surrounding lower-value homes
BA high-value home in a neighborhood of lower-value homes will be pulled down toward the neighborhood average✓ Correct
CAll homes in the neighborhood will increase in value due to regression
DRegression has no effect on appraisal values
Explanation
The principle of regression holds that the value of a higher-quality property is decreased (pulled down) by surrounding lower-quality properties. This is the opposite of the principle of progression.
Related Florida Property Valuation Questions
- Florida's county property appraiser establishes 'just value' for ad valorem tax purposes. 'Just value' is closest to:
- The 'principle of substitution' in Florida real estate valuation states that:
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
- The 'highest and best use' of a Florida property is defined as the use that is:
- In Florida, the 'Save Our Homes' (SOH) cap limits annual increases in the assessed value of a homestead property to:
- A Florida appraiser excludes a comparable sale from the analysis because the sale was a 'distressed sale' (foreclosure or short sale). This is because:
- In Florida, which type of property would most benefit from the 'cost approach' to valuation?
- A Florida appraiser determines a property's 'economic life' is 50 years and its chronological age is 10 years. The remaining economic life is:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →