Valuation and Analysis, 14% of the examination
Principle of regression
The value of a superior property is dragged down by inferior surrounding properties.
Progression is the opposite: a modest property is pulled up by grander neighbors. Both flow from the principle of conformity. Plottage is the increase in value from assembling adjacent parcels, and the assembly process itself is assemblage.
Test the distinction
A relevant question from Valuation and Analysis, selected because its facts or explanation use this concept.
A well-built, higher-quality house sells for less than otherwise comparable houses in a stronger neighborhood because surrounding lower-quality properties limit buyer demand. Which principle describes this effect?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
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