Which concept indicates that an inferior property's value can increase due to proximity to a superior property?

The concept that indicates an inferior property's value can increase due to proximity to a superior property is known as progression. This principle is based on the idea that properties in a neighborhood can influence one another's values. When a lower-quality property is situated near higher-quality properties, it tends to benefit from the overall desirability and higher values of those superior properties. This relationship can result in an increase in the inferior property's market value, as buyers may perceive it as a more attractive investment opportunity due to its location.

Understanding progression is vital for appraisers as they evaluate properties within the context of their neighborhoods. It highlights the importance of location and the effect that surrounding properties have on an individual property’s value. Consequently, appraisers must consider the attributes of nearby properties when determining value assessments and market trends.