Which principle suggests that the largest house on the block may not offer the best value?

• A. Chance
• B. Regression
• C. Progression
• D. Contribution

Answer: (B)

Regression is the idea that property values in a neighborhood tend to move toward the average value of the block. When a block has one particularly large, expensive house among smaller, lower-priced homes, the market tends to cap that large home's value by the surrounding neighborhood levels. Buyers assess value relative to nearby properties, so the largest house may not fetch a price commensurate with its size and features if the rest of the block is less expensive. In other words, the high-end home's value regresses toward the block mean rather than rising above it. By contrast, progression would imply the opposite—high-valued homes lifting nearby values—while chance is random, and contribution relates to added value from improvements rather than neighborhood effect.