100%(1)1 out of 1 people found this document helpful
This preview shows page 2 - 4 out of 5 pages.
When the value of a higher-quality property is reduced by an adjacent lower-quality property, this is called regression. 2.Your neighbors build a high-quality addition to their home, increasing its value compared to your own home's value. Because of this, you notice a bump in your property value. Which economic principle is at work here? 3.What type of value may consumers be interested in if they are looking for the potential rate of return?
4.Which economic principle is related to supply and demand? 5.What acronym can be used to remember factors that influence real property value? 6.Which economic principle pertains to how a change in a property affects its value as awhole? 7.John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price other similar homes in the neighborhood are selling for and John accepts. What does the price of $365,000 represent? 8.Quality of amenities, climate, and topography are examples of which force that influences property value?