What conclusion can be drawn from the principle of progression?

The principle of progression states that the value of a property can increase when it is situated in a neighborhood or area that contains higher-quality properties. This principle suggests that a lesser-quality property will gain value simply because it is surrounded by superior properties, as prospective buyers often perceive it as being more desirable due to the overall status and appeal of the neighborhood. This phenomenon occurs because the positive characteristics of neighboring homes can influence perceptions of value, desirability, and marketability.

Understanding this principle is crucial for real estate professionals, as it underscores the importance of location and surrounding property quality in determining a property’s market value. By recognizing that properties in desirable neighborhoods can benefit from proximity to more expensive or well-maintained homes, agents can better advise clients on investments and property sales.