Property Valuation
The principle of conformity states that property values are maximized when:
AAll properties in a neighborhood are priced the same
BLand use is reasonably similar and consistent throughout a neighborhood✓ Correct
CEvery property has the same square footage
DProperties are developed to their highest and best use regardless of surrounding uses
Explanation
The principle of conformity holds that properties tend to reach maximum value when land uses in an area are reasonably similar and consistent (homogeneous). A luxury home in a neighborhood of modest homes may suffer from regression.
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