And the same thing happens in real estate. It is referred to as the Principles of Progression and Regression. It concerns the affect surrounding properties can have on the value of a house. For example, the same 5-bedroom mini-mansion set amongst a bunch of mega-mansion is going to be valued higher than than if it were set amongst a bunch of modest 2-bedroom bungalows. The perceived value (which becomes reality in real estate) of a property is influenced by the value of the properties around it. The exact same house in a different neighbourhood or on a different street could have a different market value just because of the properties around it.
Whether you are listing or buying, the value of a property can be influenced by the value of the properties around it, and many other factors. The most important thing to consider is what is of value to you!
Thinking of buying or selling? Let me help you determine which dot is right for you!
Brad Lindeburgh, Realtor, SRS, ABR Century 21 Westcountry Realty Ltd. 403-426-0015