Property Valuation
The 'principle of regression' in New York real estate appraisal means that:
AHigher-value properties increase neighboring values
BA higher-valued property situated among lower-valued properties will tend to decrease in value toward the neighborhood norm✓ Correct
COlder properties always decline in value
DIncome properties always lose value over time
Explanation
The principle of regression states that a higher-value property situated among lower-value properties will tend to be 'pulled down' toward the lower values—an over-improvement relative to the neighborhood loses value.
Related New York Property Valuation Questions
- An appraiser in New York is appraising a single-family home in a suburban Long Island neighborhood. Which appraisal approach would most likely be given the most weight?
- In New York, the 'income multiplier' approach to commercial valuation differs from the direct capitalization approach in that:
- In New York, 'market value' as used in appraisal is defined as:
- In New York, a 'prospective appraisal' estimates the value of a property:
- In New York, the 'gross rent multiplier' (GRM) is calculated using which figures?
- In New York, when a commercial property's lease has above-market (contract) rents, the appraiser considers this through:
- Under New York real property tax law, the basis for assessing real property is:
- In New York, the 'market approach' to value is based on the economic principle of:
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 →