Principle of Progression

Definition

• The belief that the value of a smaller dwelling will increase if it is located among larger and more expensive dwellings.

Synonyms
principle of real estate progression, real estate progression principle, progression principle

Related Terms and Acronyms

• Comparables — Definition,
  • Refers to "comparable properties," which are used for comparative purposes in the appraisal process.
• Cul-De-Sac (Culd, Cldsc) — Abbreviation,
  • A dead-end street, often with a broad circle at the end.
• Current Market Value (CMV) — Acronym,
  • The estimated price determined by the recent sale of similar properties.
• Fair Market Value (FMV) — Acronym, Very Important,
  • The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
• Market Value (MV) — Acronym, Important,
  • Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
• Principle of Conformity — Definition,
  • The notion that a house will fetch a fair price if it is situated among houses of similar size, style and condition.
• Principle of Regression — Definition,
  • The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.
• Property Value — Definition,
  • The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
• Seller's Market — Definition,
  • Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.