What is Regression and Progression? 1024 579 Matthew Cooney

What is Regression and Progression?

These are 2 appraisal terms which describe how the value of a home is effected by better or lesser properties in a neighborhood.  Regression refers to the principal of how the value of a better property is brought down by less expensive neighboring houses.  This concept explains why homeowners typically don’t get their money back if they improve their house so much that it costs much more than other houses in the neighborhood.  (From an investment standpoint, you don’t want to have the best house in a neighborhood.) Conversely, progression describes how the value of a lesser house increases because the other houses in the neighborhood are more expensive. (This explains why the least expensive house in a neighborhood is typically a good investment.)

For more information, contact:

Matthew Cooney
Sales Associate
Coldwell Banker Residential Brokerage
211 South Street
Morristown, NJ 07960

(C) 973-832-5932
(O) 973-267-8990 x153
(F) 862-345-3273

http://www.MatthewCooneyHomes.com