Property Valuation
Regression in real estate appraisal means:
AA property's value increases when surrounded by higher-value properties
BA property's value is negatively affected by being the highest-value property in a neighborhood of lower-value properties✓ Correct
CThe mathematical regression analysis of comparable sales
DDepreciation due to physical wear and tear
Explanation
The principle of regression states that a higher-value property's value is pulled downward when it is surrounded by lower-value properties — the opposite of the principle of progression.
Related Massachusetts Property Valuation Questions
- The gross rent multiplier (GRM) is calculated as:
- An appraiser uses the 'reconciliation' process at the end of an appraisal to:
- In Massachusetts, the 'assessed value' is used primarily to calculate:
- The cost approach to value is most useful for appraising:
- A Massachusetts property is worth $500,000 and the land is valued at $100,000. The building is 15 years old with a 50-year economic life. What is the depreciation percentage?
- An appraiser uses three comparable sales to estimate the value of a subject property. The adjusted values of the comparables are $415,000, $422,000, and $418,000. Which value should the appraiser most likely assign?
- An appraiser adjusts a comparable sale for its superior garage (+$12,000) and inferior kitchen (−$8,000) compared to the subject property. The comparable sold for $385,000. What is the adjusted comparable price?
- In Massachusetts real estate, a 'capitalization rate' for residential income property differs from a commercial capitalization rate because:
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