The appraisal principle that states the value of a lesser property is enhanced by the presence of greater properties is called:

The principle in question refers to the concept of progression, which occurs when the value of a lesser property is positively affected by the proximity to larger or more valuable properties. This principle is grounded in the idea that amenities, desirability, and overall quality of the surrounding area can enhance the perceived value of a property. For instance, a modest home situated in an upscale neighborhood tends to appreciate in value because prospective buyers recognize the inherent benefits of living among higher-value properties, such as enhanced community features and improved aesthetic appeal.

Understanding this principle is crucial because it highlights how location and surrounding property values can influence individual property assessments, which is a vital consideration for appraisers working on property evaluations within varying neighborhoods. Distinguishing progression from other concepts, like regression, which would refer to the decrease in value due to surrounding lesser properties, further emphasizes the positive impact that greater properties can have.