Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.
Principle of Progression
The principle of progression holds that a lower-value property can benefit in market value from proximity to higher-value properties, as the desirability of the surrounding area lifts even modest homes through association with a superior location or neighborhood.
Exam context
Progression increases value of inferior property near superior properties. Regression decreases value of superior property in inferior area. Conformity favors similarity to neighbors.
Location spillover
A starter home on a street of executive properties may sell above similar homes in a weaker area because buyers pay for the school district and street prestige. Appraisers adjust comps downward when a subject enjoys progression or upward when suffering regression.
Investment caution
Progression does not justify overpaying for a tear-down without confirming land value. Agents explain that progression helps resale but may not cover overimprovement if the dwelling still falls short of neighborhood standards on size and finish.
Examples
Entry home in premium subdivision
The smallest model in a gated golf community sells for $425,000 while an identical floor plan two miles away in a plain subdivision sells for $340,000, showing progression from location.
Appraisal adjustment
An appraiser increases the subject value relative to a distant comp because the subject sits among new custom homes, documenting progression in the adjustment grid.
Keep studying
Related terms
- Principle of conformityNeighborhood similarity principle paired with progression.
- Principle of substitutionBuyers compare substitutes when judging value spillover.
Related resources
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- Florida exam topic hub
Florida-specific explainers and question sets for this topic area.
Sources
- Appraisal Institute: valuation principles(Appraisal Institute)