Final answer:
The positive effect on value that larger homes have on a smaller home in the neighborhood is known as the spillover effect.
Step-by-step explanation:
The positive effect on value that larger homes have on a smaller home in the neighborhood is known as spillover effect. When larger homes are present in a neighborhood, they can increase the value of smaller homes in the area. This is because the larger homes set a higher standard and attract buyers who are willing to pay more for a home in the neighborhood.