Principle of Regression

Definition

  • The belief that a larger and more expensive dwelling will lose value if it is located near smaller low-priced dwellings.

Synonyms
real estate regression principle, regression principle, principle of real estate regression

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 Progression Definition,
    • The notion that a smaller house's value will be enhanced if it is near larger, fancier 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.
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