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.