Property Valuation
The 'principle of regression' in NC real estate appraisal states that:
AA superior property's value is enhanced by surrounding inferior properties
BA higher-value property's value is reduced by proximity to lower-value, inferior properties✓ Correct
CProperties always depreciate over time
DMarket rents decline in recessions
Explanation
The principle of regression holds that a higher-value property (over-improvement) suffers a decrease in value from proximity to lower-value properties in the neighborhood.
Related North Carolina Property Valuation Questions
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