Property Valuation
In North Dakota, the 'principle of conformity' suggests that:
AAll properties in a subdivision should be identically priced
BMaximum value is achieved when properties conform to the predominant use and character of the surrounding area✓ Correct
CAll appraisals must conform to NDREC standards
DProperty values must conform to assessed values
Explanation
The principle of conformity holds that a property achieves its maximum value when it is compatible with and conforms to the surrounding neighborhood. Highly unusual properties that differ dramatically from the norm may lose value.
People Also Study
Related North Dakota Questions
- Which North Dakota appraisal principle holds that a property's value is influenced by the anticipated benefits it will provide in the future?Property Valuation
- Which North Dakota principle states that value is influenced by the returns expected from surrounding properties?Property Valuation
- In North Dakota, properties in the Fargo-Moorhead area consistently sell within 5% of appraised value. This suggests the market is:Property Valuation
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?Property Valuation
- A North Dakota homeowner adds a garage for $18,000. The appraiser estimates it adds $12,000 in value. What is the principle of contribution for this improvement?Real Estate Math
- A North Dakota real estate license can be held on inactive status for a maximum of:North Dakota License Law
- In North Dakota, a cooperating broker who works with a buyer in a transaction where another broker holds the listing has what type of relationship with the buyer?Agency
- In North Dakota, when a married couple holds title as 'joint tenants with right of survivorship,' what happens when one spouse dies?Property Ownership
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
State-Specific Concepts
DRE Regulation
Study This Topic
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →