Free Pennsylvania Real Estate Practice Exam Practice Question
Which of the following terms describes how the value of real estate is influenced by the addition of undesirable facilities and amenities in the surrounding areas?
Correct Answer: B
Rationale: The term that describes how the value of real estate is negatively impacted by undesirable facilities nearby is regression. This principle indicates that properties in less desirable locations can decrease in value due to surrounding factors.
Durability refers to the longevity and physical condition of a property, not its value based on location. Return on Investment (ROI) measures the profitability of an investment, which does not directly relate to external influences. Scarcity addresses the limited availability of resources or properties, rather than the impact of undesirable amenities on value.
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