What does the Principal of Progression indicate about properties in the same area?

The Principle of Progression asserts that the value of a less expensive or lower quality property can increase when it is situated near more valuable or higher quality properties. This principle is rooted in the concept that location and surrounding properties significantly influence market perceptions and values.

When a lower-valued property is in close proximity to higher-valued properties, it typically benefits from their desirability, as buyers may be willing to pay more for the lesser property due to its location among more attractive alternatives. This effect leads to an enhancement in the perceived value of the property as part of a more prestigious neighborhood or community.

Understanding this principle is key for real estate professionals since it highlights the importance of location and surrounding property characteristics in determining overall property value.