Property Valuation
In New York, the 'principle of conformity' holds that:
AA property's value is maximized when it conforms to a mortgage standard
BProperties achieve maximum value when they are used in conformity with surrounding land uses, maintaining reasonable architectural harmony and use consistency✓ Correct
CAll properties in a zoning district must be identical in design
DMarket value must conform to the assessed value
Explanation
The principle of conformity holds that properties achieve maximum value when their use and design are in reasonable harmony with the surrounding area. An over-improved property in a neighborhood of modest homes (violation of regression) or an under-improved property in an upscale neighborhood (violation of progression) will not achieve full value.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
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