California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

The principle affecting the value of the largest house in a neighborhood of smaller homes is known as?

Progression
Regression
Conformity
Competition

The correct answer is: Regression

Regression is the correct answer as it refers to the principle that the value of the largest house in a neighborhood will decrease due to the presence of smaller homes. This is because the price of the larger house will be pulled down by the prices of the smaller, less expensive homes surrounding it. Option A Progression is incorrect because it refers to the opposite principle where the value of the smaller homes in a neighborhood is increased due to the presence of a larger, more expensive home. Option C: Conformity is incorrect as it relates to the principle that a property's value is affected by its similarity to other properties in the area. Option D: Competition is also incorrect as it refers to the principle that the presence of similar properties in the same area can drive up prices due to demand.