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.

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