A real estate valuation theory which states that a property of higher value is negatively affected through comparison with lower value properties. The principle may be evident during the appraisal process whereby two or more buildings with similar amenities are compared; the more marketable property may be valued slightly lower due to its location.
Related information about principle of regression:
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Definition of principle of regression: A real estate valuation theory which states that a property of higher value is negatively affected through comparison with ...
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Related to conformity, the principle of regression tells us that high-valued properties tend to suffer when found in close proximity to lower-valued homes.
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... lesser quality will tend to be increased by being in association with residences of higher quality in the same area. The opposite of the Principle Of Regression.
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