Property Valuation
Over-improvement of a Utah property (building a much more expensive home than typical for the neighborhood) is an example of:
AProgression—the home's value is enhanced by the neighborhood
BRegression—the home's value is held back by the lower value of surrounding properties✓ Correct
CContribution—the improvements add their full cost to value
DConformity—the home sets a new standard for the neighborhood
Explanation
An over-improvement (building a luxury home in a modest neighborhood) is subject to the principle of regression—the high-quality home's value is pulled down toward neighborhood norms.
Related Utah Property Valuation Questions
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