California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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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.