Property Valuation
The principle of conformity states that:
AAll properties in a neighborhood should be identical
BMaximum value is achieved when properties are similar in style and use to surrounding properties✓ Correct
CNew properties are always worth more than older ones
DCommercial properties must conform to residential standards
Explanation
The principle of conformity holds that a property attains its maximum value when it is surrounded by and consistent with properties of similar type, style, and use.
Related Delaware Property Valuation Questions
- Plottage value results from:
- What is the 'principle of substitution' in real estate appraisal?
- What is 'market value' as defined in appraisal practice?
- What is a 'Uniform Residential Appraisal Report' (URAR) used for in Delaware?
- What is 'reversion value' in a Delaware income property DCF analysis?
- What is 'external obsolescence' in a Delaware appraisal?
- Gross rent multiplier (GRM) is calculated as:
- What is the 'neighborhood life cycle' theory in Delaware real estate valuation?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →