Property Valuation
The principle of 'conformity' states that:
AAll properties in a neighborhood must have the same price
BMaximum value is achieved when a property is similar in design and use to surrounding properties✓ Correct
CProperties must conform to HOA rules
DAll appraisals must conform to USPAP
Explanation
The principle of conformity holds that a property achieves its maximum value when it is similar (conforms) to surrounding properties in use, design, and size. Over-improvements or under-improvements relative to the neighborhood can reduce value.
Related Alabama Property Valuation Questions
- Effective age of a building differs from actual (chronological) age because effective age:
- When an appraiser states a value 'as of' a certain date, this is called the:
- Market value is best defined as:
- Which type of depreciation is generally considered incurable and originates from outside the property?
- What is the principle of 'substitution' in real estate appraisal?
- In the income approach, which formula is used to estimate property value?
- Functional obsolescence in property valuation refers to:
- The principle of 'contribution' in appraisal states that:
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