Progression

Definition

Progression in plain English

Progression is the idea that a cheaper house gets a value boost just by sitting next to fancier, more expensive homes. Buyers will pay a bit more for the modest house because the nice neighborhood makes it feel more desirable. Think of a plain sneaker displayed on a shelf full of designer shoes — some of that upscale shine rubs off. Its opposite is regression (a nice home dragged down by shabby neighbors), and both come from the bigger idea that homes are worth most when they fit in with those around them.

Learn these first

• Cost approach
• Market value

Related National Real Estate Exam terms

• Accrued depreciation
• Adjustable-rate mortgage (ARM)
• Anticipation
• Appraisal
• Assemblage
• Assessed value
• Capitalization rate
• Comparative Market Analysis (CMA)
• Contribution
• Cost approach