Property Valuation
Regression in property valuation means:
AA property's value increases over time
BA higher-priced property's value is pulled down by lower-priced surrounding properties✓ Correct
CProperties in poor condition appreciate faster than average
DThe cost approach always results in a lower value than the sales comparison approach
Explanation
The principle of regression holds that if a higher-quality or higher-priced property is situated among lower-quality or lower-priced properties, its value will be pulled down toward the values of surrounding properties. The opposite principle is progression.
Related Pennsylvania Property Valuation Questions
- Plottage refers to the increase in value that results from:
- A Pennsylvania appraiser's 'gross living area' (GLA) calculation for a residential property includes:
- An appraiser's 'comparable sale' (comp) for a Bucks County home should ideally meet which criteria?
- The principle of conformity holds that:
- Economic base analysis in Pennsylvania real estate market analysis examines:
- When appraising a historic rowhouse in Philadelphia, the appraiser identifies that the plaster walls and ornate details are a market preference among buyers in that neighborhood. This represents:
- The 'principle of substitution' underlying appraisal theory states that:
- A Harrisburg commercial property generates $120,000 NOI annually and is sold at a 8% cap rate. What is the sale price?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →