Property Valuation
In New York, the 'principle of progression' means that:
AProperty values always increase over time
BA lower-value property situated among higher-value properties tends to increase in value✓ Correct
CNew construction always has higher value than older buildings
DProperty values progress from rural to urban
Explanation
The principle of progression states that a lower-value property benefits from being situated among higher-value properties—the 'rising tide lifts all boats' effect. This is the opposite of regression.
People Also Study
Related New York Questions
- The 'principle of regression' in New York real estate appraisal means that:Property Valuation
- In a New York appraisal, 'regression' in the principle of regression means:Property Valuation
- The principle of 'first in time, first in right' in New York recording law means:Property Ownership
- The principle of progression in real estate valuation means:Property Valuation
- In New York, the 'principle of anticipation' in real estate valuation states that:Property Valuation
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →