In appraisal, what does the term "progression" refer to?

"Progression" in appraisal refers specifically to the increase in value experienced by a property that is considered inferior, due to its association with nearby superior properties. This concept is based on the idea that when a less desirable property is located in a neighborhood with more desirable or higher-value properties, its market value can be positively impacted.

This relationship arises from the principle of externalities in real estate, where the characteristics and desirability of surrounding properties influence the value of an individual property. For example, a modest home situated in a neighborhood filled with upscale homes may see its value rise because buyers perceive a benefit in being part of that well-regarded locality.

This notion distinctly contrasts with the other options related to property value dynamics. The decline of a superior property in value is more closely aligned with the concept of "regression," which describes how a high-quality property may lose value in a poor-quality neighborhood. Likewise, the idea of a balance in property value relationships does not capture the nuances of progression, which focuses on the upward movement of value due to the context of surrounding properties. Finally, a property's contribution to an area's growth does not specifically address the inter-property dynamics that characterize progression.