Property Valuation
The principle of regression in Kansas real estate states that:
AHigher-value homes benefit from being near lower-value homes
BAn above-average property in a neighborhood of lower-value homes will be adversely affected in value✓ Correct
CProperty values always decline during economic recessions
DInvestors should never buy the best home in a neighborhood
Explanation
The principle of regression states that a above-average property surrounded by inferior properties will be pulled down in value by those inferior properties.
Related Kansas Property Valuation Questions
- What is 'locational obsolescence' in Kansas property appraisal?
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