What outcome can be expected from using the principle of progression in real estate valuation?

The principle of progression in real estate valuation indicates that the value of a property can increase when it is located in a neighborhood of higher-value properties. This principle operates on the idea that the overall desirability and market appeal of the area can positively influence the lower-value properties, resulting in an enhancement of their value.

For example, if a modest home is located in a neighborhood that features larger, more expensive houses, the investment and desirability of that neighborhood can lead to an increase in the value of the modest home. This effect is particularly pronounced when the presence of higher-value properties attracts buyers and investors to the area, bolstering demand, and consequently increasing prices for all properties, including those that were previously lower in value.

In contrast, the other outcomes listed do not reflect the tenets of the principle of progression. Lower-value properties losing value would suggest the opposite effect, while higher-value properties remaining unchanged does not account for the dynamics of neighborhood influence. Finally, properties becoming unsellable would indicate a decline in desirability, which is not consistent with the upward momentum that the principle of progression aims to highlight.