Property Valuation
In a declining Louisiana neighborhood, the principle of 'regression' means:
AProperty values are declining due to aging
BA higher-value property in a lower-value neighborhood is pulled down in value by its surroundings✓ Correct
CRegression analysis is used to predict future values
DDepreciation is calculated using a regression formula
Explanation
The principle of regression holds that a high-value property in a lower-value neighborhood will be negatively affected by its surroundings — its value is pulled down toward the level of neighboring properties.
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