The Principle of Progression

Principle progression in home buying

You’ve narrowed your search down to a few homes in neighborhoods you like. They have comparable amenities and the features you want. How do you choose the right house? You use of the principle of progression to buy the home that’s going to provide the best value for you.

What is the principle of progression?

The principle of progression means that your property values are enhanced by being near other homes with higher property values. For example, if your home is valued at $50,000 less than the median price of your neighboring homes, your home’s value is greater than it would be if valued in isolation. The inverse is also true. If you buy an expensive home next to a home that’s significantly lower priced, your home value could, and probably will, go down. The obvious choice, then, is to go for the home with a lower price tag because the homes around it improve its value.

As they say in real estate investing: buy the worst house on the best street!

Is this home is worth buying?

There’s a catch 22 in the principle of progression. If a home is priced significantly lower than the homes around it, there’s probably a reason. That reason may be a defect. Some defects are relatively minor, while others can cause a major strain on your wallet. In addition, major defects can make it more difficult to sell the house.

Cosmetic defects are obviously the easiest to correct. If the home can benefit from refreshed landscaping or new paint, that makes the lower price tag a great deal. Those things are easy to fix. Even some larger-scale improvements, such as upgrading a bathroom or an electrical system, can still provide a great deal if the price tag is right.

Be careful about when a minor defect turns into a major defect, though. Before you get into the cosmetic changes, hire a home inspection and find out what’s under that ugly paint job. Check out the plumbing, foundation and wiring. Hidden problems can become serious issues. You must balance your desire for a deal with a professional inspection that can give you an idea of the real picture.

Is this home is worth paying for?

And of course,, having found the right home, you’ll also find out the best way to pay off your house years sooner, possibly in as little as 5-8 years. We’ve helped hundreds of people cut their mortgage interest in half, easily saving a third off their scheduled payback simply by changing the way they pay. They6 may use a home equity line of credit (HELOC), a savings account, or even their regular checking account. It’s just a matter of knowing the best way to move money.

To hear a presentation and see a live demo of the equity cycling software, register for our mortgage acceleration webinar.

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