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Define Progression in Real Estate
Progression:
"Progression" is a term used in real estate to describe how a property's value can be influenced by the value of other properties in the same area. When a property is located near or associated with higher-value properties, its own value can increase as a result.
Example:
Let's say that a small house is located in a neighborhood with many large, luxurious homes. Even though the small house may not be as fancy as the other homes in the neighborhood, its value could be enhanced by its association with the superior properties around it.
"A Deep Dive for Real Estate Agents and Appraisers"
Here are a few additional things you should know about progression:
- Progression is just one factor that can influence a property's value. Other factors include location, condition, age, and amenities.
- The opposite of progression is regression, which occurs when a property's value is negatively affected by its association with inferior properties.
- Progression can be a double-edged sword. While it can increase the value of a property, it can also lead to higher property taxes and maintenance costs.
- When appraising a property, appraisers will take progression and regression into account when determining the property's value.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Progression is when a property's value climbs,
By being near other properties, it's not a crime.
It's a boost to the value, a real estate win,
Being associated with superior properties is akin.