Property Valuation
Which principle of value states that the value of a property is affected by the value of surrounding properties?
APrinciple of substitution
BPrinciple of conformity✓ Correct
CPrinciple of anticipation
DPrinciple of contribution
Explanation
The principle of conformity holds that maximum value is achieved when properties in a neighborhood are reasonably similar in use and design. A property's value is influenced by surrounding properties — a run-down house can reduce neighborhood values, while well-maintained homes support them.
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