Property Valuation
What is the 'principle of progression' in real estate appraisal and what is an example in Idaho?
AThe principle that property values always increase over time
BThe principle that the value of an inferior property is enhanced by proximity to superior properties; an example is a modest home in an area of expensive homes increasing in value✓ Correct
CThe principle that the market progressively adjusts to new information
DThe principle governing how cap rates decline in improving markets
Explanation
The principle of progression holds that lower-value properties benefit from proximity to higher-value properties. In Idaho, a small, dated home surrounded by much larger, newer homes in a desirable neighborhood may sell for more than it would if located in a comparable neighborhood — its value is 'lifted' by the surrounding superior properties.
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