Property Valuation
What is the 'principle of conformity' in Oregon real estate appraisal?
AAll appraisals must conform to USPAP standards
BMaximum value is achieved when a property is similar in use, style, and quality to other properties in the neighborhood✓ Correct
CAppraisers must conform their values to the contract price
DProperties must conform to local zoning before they can be appraised
Explanation
The principle of conformity states that a property achieves maximum value when its use and characteristics are consistent with surrounding properties. An overdeveloped or underdeveloped property relative to its neighborhood may experience value regression or limit appreciation (principle of regression).
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