Property Valuation
The regression principle in Virginia appraisal holds that:
AOver-improved properties in a neighborhood benefit from surrounding lower-value properties
BAn above-average property surrounded by lower-value properties will have its value pulled down toward the lower values✓ Correct
CNeighborhood values always decline over time
DImprovements always add value greater than their cost
Explanation
The regression principle states that a higher-value property among lower-value properties will have its value pulled down (regressed) toward the lower values. The opposite principle — progression — applies to a lower-value property among higher-value ones.
Related Virginia Property Valuation Questions
- The principle that states the value of a property is enhanced when it conforms to the surrounding neighborhood is known as:
- Economic obsolescence (external obsolescence) in a Virginia appraisal is caused by:
- An appraiser makes a positive adjustment to a comparable sale in Virginia when the comparable is:
- A Virginia property's highest and best use is the use that is:
- In Virginia, the effective age of a building differs from its actual age because:
- Under the cost approach in Virginia, if a comparable newly built home costs $350,000 to build (not including land) and the subject property has 15% depreciation, the depreciated cost of improvements is:
- In Virginia, a 'before and after' appraisal is commonly used when:
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