What is progression in real estate?

What is the principle of progression?

The principle of progression implies that there is an optimal level of overload that should be achieved, and an optimal time frame for this overload to occur. A gradual and systematic increase of the workload over a period of time will result in improvements in fitness without risk of injury.

What is a principle of regression in real estate?

The principle of regression is a term used by real estate appraisers stating that the value of high-end real estate may be diminished by having lower-end properties in the same vicinity. This principle is used frequently in writing zoning laws, which strive to keep business and residential areas separate.

What is theory of progression and recession?

The principle of progression states that the value of less expensive properties will increase when more expensive properties come into the area. … The principle of regression states that the value of a more expensive property will decrease when less expensive properties come into the area.

What is the appraisal principle that is considered the opposite of progression?

Regression and Progression. The principle of regression states that when a superior property is placed in an area of properties that are of lower quality, the superior property’s value is diminished.

THIS IS INTERESTING:  How much did house prices drop in 2008 UK?

What is an example of progression?

Progression is the way things move forward, or a series of successive events. When you go from one blonde girlfriend to another almost identical blonde girlfriend over and over, this is an example of a progression of blonde girlfriends.

What is progression and regression?

As nouns the difference between progression and regression

is that progression is the act of moving from one thing to another while regression is an action of regressing, a return to a previous state.

What does substitution mean in real estate?

The principle of substitution states that the upper limit of value tends to be set by the cost of acquiring an equally desirable substitute, assuming no untimely delays. A prudent investor would pay no more for an income-producing property than it would cost to build or purchase a similar property.

What is reconciliation in real estate?

Real estate valuation reconciliation is the process through which appraisers take values derived through different techniques and/or different people, reviews the different figures to arrive at a final estimate of value. It requires significant judgment and experience on the part of the appraiser.

What is highest and best use in real estate?

Highest and Best Use, Defined

The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.

What is contribution in real estate?

The principle of contribution states that the worth of an improvement is what it adds (or contributes) to the market value of the entire property, not what it cost to add the improvement. This is a key factor when deciding to add to existing improvements.

THIS IS INTERESTING:  What is real estate project finance?

What is scarcity in real estate?

Scarcity means there must be a short supply relative to demand. … When the supply of real estate housing property is limited and demand is great, the result is rising land or housing property value prices.