Property Valuation

The 'principle of conformity' in real estate valuation states that:

AA. All properties in a neighborhood must sell for the same price
BB. Property values are maximized when the property conforms to neighborhood standards✓ Correct
CC. Unique properties always command higher prices
DD. Non-conforming uses must be removed for values to increase

Explanation

The principle of conformity holds that property values are maximized when a property is consistent with surrounding properties in terms of size, style, and use. An oversized or undersized property in a neighborhood may not achieve its maximum value.

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