business

A contract to build a new home is signed with a builder to build a luxury home costing 675 thousand dollars in a neighborhood of homes valued 150 thousand dollars and less.

The new new will lose value.

This loss of value is known as aversion.

Is this true or false ?

Take your time. The soution is posted below the wildlife photo.

wildlife

A. False

The loss of value is known as regression.

Regression is defined as a that which reduces the value of a property because of the impact of the lower value properties adjacent to the more valuable property.

Aversion is an intense feeling of dislike or the act of turning away from something.

Earth

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Posted by David Saks on 06/05/2009 06:30 PM   Comments (0)   Theory and Practice in the ActiveRain Channel   theory and practice  
Originally posted at: David Saks: Real Estate Practice : Lesson 188
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