Property Valuation
The principle of progression in Utah real estate states that:
AProperty values always increase over time
BA lower-value property benefits from being located near higher-value properties✓ Correct
CNew construction is always worth more than existing structures
DImprovements always increase value by more than their cost
Explanation
The principle of progression holds that a less desirable property surrounded by more valuable properties will be pulled upward in value. The opposite principle (regression) applies when a high-value property is surrounded by lower-value ones.
People Also Study
Related Utah Questions
- The principle of contribution in Utah appraisal states that the value of any component is:Property Valuation
- The principle of anticipation in Utah real estate valuation states that value is based on:Property Valuation
- The principle of regression in appraisal states:Property Valuation
- The principle of substitution in Utah real estate states that:Property Valuation
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →