According to the principle of progression, a three-bedroom home will have a higher sales price if it is located in a neighborhood where?

The principle of progression suggests that a property will have a higher value when it is situated in a neighborhood where the surrounding properties are of higher quality or larger size. This is because the perceived value of a home can be positively influenced by more expensive or larger homes nearby, as they can enhance the neighborhood's overall desirability.

In the case of a three-bedroom home, if it is located in a neighborhood where most homes are larger, this home is likely to be viewed more favorably. Buyers often associate the presence of larger homes with a better quality of life, enhanced amenities, and a generally more desirable living environment. As a result, the three-bedroom home can command a higher sales price compared to similar homes in neighborhoods where the surrounding properties do not have these attributes.

This understanding helps real estate professionals gauge market trends and pricing strategies effectively.