Property Valuation
The principle of conformity holds that:
AAll comparable properties must have the same square footage
BA property achieves maximum value when it conforms to the surrounding properties in use, design, and character✓ Correct
CProperties must conform to zoning regulations to be appraised
DAppraisers must follow USPAP in all assignments
Explanation
The principle of conformity states that a property achieves its maximum value when it is consistent with surrounding properties. A house dramatically different in size or quality from its neighbors may suffer regression or progression effects.
People Also Study
Related Arkansas Questions
- Regression is an appraisal principle that states:Property Valuation
- The principle of contribution states that the value of an improvement is measured by:Property Valuation
- Which appraisal principle holds that value is created by the expectation of future benefits?Property Valuation
- The principle of PROGRESSION states that:Property Valuation
Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
Study This Topic
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →