Property Valuation
In Michigan, the principle of 'progression' in real estate means:
AProperty values increase over time
BA lower-value home benefits from being located near higher-value homes✓ Correct
CImprovements always increase property value by more than their cost
DNewer properties are always worth more than older ones
Explanation
The principle of progression states that the value of an inferior property is enhanced when it is located near superior properties. The opposite — a higher-value property losing value from nearby inferior properties — is the principle of regression.
Related Michigan Property Valuation Questions
- Effective gross income (EGI) in Michigan property analysis equals:
- In Michigan, 'appraisal independence' requirements under Dodd-Frank and HVCC require that:
- The principle of substitution in appraisal states that a buyer will not pay more for a property than:
- Depreciation in appraisal refers to:
- In Michigan, 'reproduction cost' in the cost approach differs from 'replacement cost' because:
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- External factors that support Michigan home values include:
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