Final answer:
The value of the largest house in a neighborhood of smaller homes is often affected by the principle of regression or progression, where the property's value can be pulled down or lifted based on surrounding properties.
Step-by-step explanation:
The value of the largest house located in a neighborhood of smaller homes may be affected according to the principle of regression or progression. This is a concept in real estate that suggests that the value of the best property is pulled down by the lesser quality of the surrounding properties (regression), and similarly, the value of the smallest or least expensive property is lifted by the higher value of the larger homes (progression). For example, a luxurious, large house in a neighborhood of smaller and less expensive homes might not be valued as highly as it would be in a neighborhood of similarly large and luxurious houses due to the principle of regression. Similarly, a small, modest home may have its value increased due to the principle of progression if it's surrounded by larger, more expensive homes.