What principle is represented by the concept of 'progression' in real estate appraisal?

The principle of 'progression' in real estate appraisal states that a property's value can increase when it's located in proximity to superior properties. This occurs because the presence of higher-quality, more expensive homes can enhance the perceived value of a lesser-quality property. Essentially, the surrounding environment positively influences the property in question, leading to an increase in its market value.

For instance, if a modest home is situated in a neighborhood filled with luxurious houses, buyers might see added value in the modest home simply due to its location. This demonstrates how external factors like the quality of neighboring properties can uplift the overall perception and worth of a property, thus illustrating the principle of progression effectively.

In contrast, the other options describe different real estate concepts. Factors that might depress a property’s value or the overarching significance of location in determining price are distinct principles from that of progression.