Property Valuation
The principle of 'conformity' in Louisiana real estate valuation holds that:
AAll homes in a subdivision must have identical floor plans
BProperties reach maximum value when they conform to the predominant use and style of the surrounding neighborhood✓ Correct
CAppraisers must conform to LREC guidelines
DZoning must conform to comprehensive plan designations
Explanation
The principle of conformity states that properties achieve maximum value when they are consistent with the surrounding neighborhood's use, style, and size — an over-improved or under-improved property relative to its surroundings typically suffers in value.
Related Louisiana Property Valuation Questions
- When a Louisiana appraiser uses the 'paired sales analysis,' they are:
- A Louisiana appraiser notes that a comparable sale was a foreclosure and the seller was highly motivated to sell at a discount. This sale would likely be:
- An appraiser performing a retrospective appraisal in Louisiana is estimating value as of:
- A property is appraised at $280,000. The assessment ratio in the parish is 10%. What is the assessed value?
- What does 'highest and best use' mean in real estate appraisal?
- The 'principle of substitution' in real estate appraisal states that:
- A 'comparative market analysis' (CMA) differs from an appraisal in that a CMA:
- An appraiser notes that a Louisiana home has a swimming pool that cost $35,000 to install but only adds $15,000 to market value. This demonstrates the principle of:
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