A modest bungalow sits on a street of much larger renovated homes that regularly sell for far more than the subject. Which principle best explains why the bungalow may be worth more than a similar bungalow in a more average setting?
Correct Answer
A) Progression from superior surroundings
Progression means a lesser-valued property can gain value by association with many higher-valued neighboring properties. The smaller bungalow may benefit because its location places it among more expensive homes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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Previous Question
A well-kept residential block consists mainly of similar brick colonials. One owner converts the front yard into visible outdoor storage for a repair business, and nearby buyer interest weakens. Which principle most directly supports the appraiser's conclusion that value may be harmed?
Next Question
A newly built luxury home is surrounded by several older, much smaller houses on the same block. Which appraisal principle suggests the luxury home's value may be pulled downward by its surroundings?