Property Valuation

In Hawaii, what is 'regression' in the context of property value?

AA. A statistical method used to calculate assessed values
BB. The principle that a high-value property located near lower-value properties may have its value pulled down✓ Correct
CC. A decrease in property value due to aging
DD. The reduction in value when a property is subdivided

Explanation

The principle of regression holds that a higher-value property surrounded by lower-value properties will tend to have its value reduced toward the value of the surrounding properties.

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