Property Valuation
In South Dakota, the 'principle of regression' in real estate valuation states that:
AProperty values eventually decrease to zero
BA higher-value property is negatively affected by being located near lower-value properties✓ Correct
CNew properties regress in value faster than older ones
DAll properties in a neighborhood eventually reach the same value
Explanation
The principle of regression is the opposite of progression. It states that a higher-value property's value is diminished by proximity to lower-value properties. For example, an expensive home in a neighborhood of less expensive homes may sell below what it would in a neighborhood of comparable properties.
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