Property Valuation
The 'principle of regression' in North Dakota real estate appraisal states that:
AProperty values always decline over time
BA higher-value property's worth is pulled down when surrounded by lower-value properties✓ Correct
CProperties built earlier are worth more than newer properties
DProperty values regress to the mean tax assessment
Explanation
The principle of regression states that a superior property's value is adversely affected (pulled down) by the presence of inferior properties in the same area. This is why overbuilding a neighborhood can reduce value.
Related North Dakota Property Valuation Questions
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