Property Valuation
What is the 'principle of conformity' in real estate appraisal?
AProperties should look exactly like their neighbors
BValue is maximized when a property conforms to the general character (use, style, size) of the surrounding neighborhood✓ Correct
CAll properties in a neighborhood should be the same price
DProperties must conform to zoning law to have value
Explanation
The principle of conformity states that a property achieves maximum value when it is similar in size, style, age, and use to surrounding properties. Under-improvement or over-improvement relative to the neighborhood can reduce value.
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