Property Valuation
In Nevada, which principle of value states that the value of a property is affected by the values of surrounding properties?
APrinciple of substitution
BPrinciple of conformity✓ Correct
CPrinciple of contribution
DPrinciple of anticipation
Explanation
The principle of conformity holds that maximum value is achieved when a property conforms to surrounding properties in terms of use, style, and size. A property that is much different from its neighbors may suffer a loss in value.
Related Nevada Property Valuation Questions
- What is the difference between effective age and chronological age in Nevada real estate appraisal?
- What is an appraisal's 'effective date' and why is it important in Nevada?
- What is a before-and-after appraisal in Nevada condemnation (eminent domain) proceedings?
- An appraiser using the income approach for a Las Vegas strip mall estimates annual gross income of $420,000, operating expenses of $168,000, and applies a cap rate of 7%. What is the estimated value?
- In Nevada, what is the assessed value for property tax purposes versus market value?
- What is the gross rent multiplier (GRM) used for in Nevada real estate?
- Gross Rent Multiplier (GRM) is calculated by dividing the:
- What is a square-foot cost in Nevada construction and how is it used in appraisal?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →