Property Valuation
The 'principle of regression' in real estate valuation states that:
AHigher-value homes in a neighborhood raise the value of all nearby homes
BThe value of a higher-priced home is dragged down by proximity to lower-value homes✓ Correct
CAll properties in a market depreciate at the same rate
DNew construction always exceeds existing home values
Explanation
The principle of regression states that the value of a higher-priced property is negatively affected when it is surrounded by lower-value properties — the opposite of the principle of progression.
Related Louisiana Property Valuation Questions
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