Regression (Appraisal)

Definition: Regression is the tendency for a higher-value property to be adversely affected by its association with lower-value properties of a comparable type.

Example

An unusually elaborate home may not recover its extra construction cost in a market dominated by more modest homes.

Keep the distinction clear

The term here is an appraisal principle, not a statistical regression model. Market evidence is still needed.

Related terms

Progression (Appraisal) · Overimprovement · Market Value

Keep studying

Comparable Sales: Adjustments and Weighted Values

References: California DRE: appraisal and valuation concepts

Pronunciation (US): rih-GRESH-uhn (capitals show stress)

Pronunciation reference: Merriam-Webster