Property Valuation
The principle of 'conformity' in real estate valuation states that:
AAll properties in a neighborhood must be identical
BProperties achieve maximum value when they conform to the neighborhood's character and use✓ Correct
CImprovements always add their full cost to property value
DOlder properties are always worth less than newer ones
Explanation
The principle of conformity states that properties achieve maximum value when they are compatible with and conform to the general character and land use patterns of the surrounding neighborhood.
Related Maryland Property Valuation Questions
- An appraiser is estimating the value of a commercial property primarily using the income approach. Which data is MOST important?
- Which professional is required to perform an appraisal for a federally regulated mortgage transaction in Maryland?
- When an appraiser uses the income approach to value a Maryland apartment building with a NOI of $90,000 and a cap rate of 7.5%, what is the estimated value?
- In Maryland, a 'drive-by appraisal' (exterior-only inspection) is less reliable than a full interior appraisal because:
- Accrued depreciation in the cost approach is the sum of:
- An appraiser finds that comparable sales in a Maryland neighborhood show a consistent upward trend of 0.5% per month. A sale from 4 months ago should receive a time adjustment of approximately:
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- Which appraisal approach estimates value by comparing the subject property to recently sold similar properties?
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