Property Valuation
The principle of regression in Maryland real estate means:
AValues always decrease over time
BAn overimprovement for the area will be pulled down in value by surrounding lower-value properties✓ Correct
COlder properties are always worth less than newer ones
DAssessed values decrease after appeals
Explanation
Regression holds that a superior property in a neighborhood of inferior properties will be pulled down in value — the opposite of progression.
Related Maryland Property Valuation Questions
- The principle of substitution states that a buyer will pay no more for a property than:
- In Maryland, a 'drive-by appraisal' (exterior-only inspection) is less reliable than a full interior appraisal because:
- An appraiser is estimating the value of a commercial property primarily using the income approach. Which data is MOST important?
- An appraiser finds that comparable sales in a Maryland neighborhood show a consistent upward trend of 0.5% per month. A sale from 4 months ago should receive a time adjustment of approximately:
- An appraiser's estimate of value for a Maryland property found under the income approach is $600,000 and under the sales comparison approach is $620,000. In reconciliation for a residential property, the appraiser would most likely:
- Functional obsolescence in a Maryland home would BEST be described as:
- The cost approach to value is MOST reliable for appraising:
- The cost approach to value calculates:
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