Property Valuation
The principle of conformity in real estate appraisal holds that:
AAll properties in a neighborhood must be identical
BProperties achieve maximum value when they are similar to and compatible with surrounding properties✓ Correct
CBuildings must conform to zoning codes to be appraised
DValue is determined only by the most expensive comparable
Explanation
The principle of conformity states that properties achieve maximum value when they are similar in type, size, style, and use to surrounding properties. Non-conforming properties may lose value due to regression.
Related New Hampshire Property Valuation Questions
- A NH appraiser who uses the sales comparison approach for a new lakefront home would primarily select comparables that are:
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