Property Valuation
Regression in real estate appraisal means:
AA superior property is pulled down in value by inferior surrounding properties✓ Correct
BA property's value increases when surrounded by superior properties
CDepreciation due to physical wear and tear
DA decline in sales prices due to rising interest rates
Explanation
The principle of regression states that a higher-value property will be negatively affected (its value diminished) when surrounded by lower-value properties.
Related New Jersey Property Valuation Questions
- When comparing sales in the sales comparison approach, a positive adjustment is made to the comparable when:
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