Property Valuation
In Vermont, the 'regression principle' suggests that a high-value home placed in a neighborhood of lower-value homes will:
AIncrease surrounding home values
BExperience a pull downward in value due to the influence of the lower-value surrounding properties✓ Correct
CMaintain its full value since quality always commands premium pricing
DBe required to be rezoned
Explanation
The principle of regression holds that a higher-value property in a lower-value neighborhood will tend to decrease in value toward the neighborhood norm. Vermont appraisers consider regression (and its opposite, progression) when evaluating the appropriateness of comparable sales and location adjustments.
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