Property Valuation
The 'principle of progression' in real estate states that:
AA. Property values always increase over time
BB. A lower-value property can be positively influenced by being located near higher-value properties✓ Correct
CC. Renovated properties always sell above market
DD. New construction always commands a premium over existing properties
Explanation
The principle of progression holds that a lower-value property surrounded by higher-value properties tends to increase in value due to the positive influence of its surroundings. This is the opposite of the principle of regression.
Related Georgia Property Valuation Questions
- 'Value in use' differs from 'market value' in that value in use is:
- Functional obsolescence in real property refers to:
- Reconciliation in the appraisal process involves:
- In a residential appraisal, the most important comparable is generally the one that:
- Regression and progression are appraisal principles that affect value through:
- When a comparable sale sold for more than the subject property, the appraiser makes a:
- The land residual technique in appraising is used when:
- Which of the following would be considered an arm's-length transaction for comparable sales purposes?
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