Which basic principle addresses value changing with progression or regression?

Which basic principle addresses value changing with progression or regression?

• A. Progression/Regression
• B. Anticipation
• C. Externalities
• D. Substitution

Answer: (A)

Progression and regression describe how property values are influenced by the values of neighboring properties. If a property sits in a neighborhood of higher-valued homes, its own value tends to rise toward those higher values (progression). If it sits among lower-valued homes, its value tends to fall toward their level (regression). This neighborhood context is why appraisers weigh nearby comps and the general desirability of the area when estimating value. It directly addresses how value changes with progression or regression, unlike ideas that focus on future benefits, external effects, or substitution.

Progression and regression describe how property values are influenced by the values of neighboring properties. If a property sits in a neighborhood of higher-valued homes, its own value tends to rise toward those higher values (progression). If it sits among lower-valued homes, its value tends to fall toward their level (regression). This neighborhood context is why appraisers weigh nearby comps and the general desirability of the area when estimating value. It directly addresses how value changes with progression or regression, unlike ideas that focus on future benefits, external effects, or substitution.