If it’s one thing I love, it’s fun economic principals…like law of supply and demand, price elasticity of demand, the principal of substitution, and, of course, those old chestnuts – the principals of regression and progression. These principals describe how the value of homes are brought up, or brought down, by the homes around them. Smaller homes tucked away in a neighborhood of predominantly larger homes will be brought up in value through progression, and larger homes in neighborhoods of smaller homes will likewise be brought down. But it’s not just home size – it’s any condition really which makes the surrounding homes by and large inferior or superior to the “subject property.” This is something to be aware of when you’re considering how much your home is likely to sell for – you must pay careful attention to homes that are in your home’s subdivision or immediate area, and pay less attention to homes which aren’t too far away but which in neighborhoods that have significantly higher or lower home values. These homes might *look* like good comparable but can be misleading indicators of value.
The Principals of Regression and Progression
423 Pleasant Valley Road, Aptos, CA
Turn Off Light
I Like ThisUnlike Like
I Dislike ThisUn-Dislike Dislike