Property Valuation
In Maine, the 'principle of regression' means that a very expensive home in a neighborhood of modest homes will:
AIncrease the value of all surrounding properties
BBe valued lower than it would be in a more upscale neighborhood✓ Correct
CAlways sell faster due to its higher quality
DBe exempt from local property taxes
Explanation
The principle of regression holds that a high-value property surrounded by lower-value properties tends to be valued less than if it were in a comparable high-value neighborhood — it is 'pulled down' by its surroundings.
Related Maine Property Valuation Questions
- An appraiser in Maine performing a 'retrospective appraisal' for a property that sold 3 years ago will use comparable sales that are:
- In Maine, a property's value may be affected by 'deed restrictions' because restrictions:
- A Maine bank orders an appraisal for a $350,000 mortgage. The appraiser's fee is $600. Under USPAP, the fee:
- A Maine appraiser determines that a property has an effective age of 20 years and a total economic life of 60 years. The straight-line depreciation percentage is:
- In Maine, the principle of progression in real estate value states that:
- In real estate valuation, 'highest and best use' means:
- In Maine, 'effective age' in appraisal refers to:
- Which of the following is NOT a factor that affects real property value?
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