Property Valuation

What is 'regression' in real estate appraisal as it might apply in Kansas?

AThe statistical method of comparing recent sales
BThe principle that a higher-value property loses value when surrounded by lower-value properties✓ Correct
CThe reduction in value due to physical deterioration
DA method of adjusting for market changes over time

Explanation

The principle of regression states that a superior property's value is diminished by its association with inferior properties. An expensive home in a less desirable neighborhood will sell for less than in a comparable neighborhood.

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