Property Valuation
The principle of conformity states that:
AA property reaches maximum value when used for its highest and best use
BValue is maximized when a property conforms to the surrounding neighborhood's use and style✓ Correct
CProperty value increases when demand exceeds supply
DFuture benefits determine present value
Explanation
The principle of conformity holds that a property achieves its maximum value when it is in harmony with its surroundings. A home that is very different from neighboring properties (much smaller or much larger) may suffer value loss due to regression or progression.
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