Property Valuation
The principle of conformity in Indiana real estate valuation holds that:
AAll properties in a neighborhood must be identical
BMaximum value is achieved when properties in a neighborhood are reasonably similar in size, style, and use — creating a homogeneous area✓ Correct
CAll properties must conform to current zoning
DBuildings must conform to current building codes
Explanation
Conformity holds that value is maximized when land uses and improvements are homogeneous and consistent with surrounding properties. Significant deviations — over-improvement or under-improvement — typically reduce value.
Related Indiana Property Valuation Questions
- The cost approach to appraisal estimates value by:
- An Indiana commercial property appraisal scope of work is determined by:
- A building's effective age in appraisal practice:
- A capitalization rate of 5% in the Indianapolis market versus 8% in a rural Indiana market suggests that:
- In Indiana appraisal practice, the 'as is' condition of a property means the appraiser values the property:
- An Indiana appraiser valuing a special purpose property (such as a church or school) would most likely rely on:
- An Indiana office building has a 5-year lease at $20/sqft for 10,000 sqft. Market rent is currently $25/sqft. The value impact of the below-market lease is:
- Which of the following statements about depreciation in the cost approach is correct?
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