Property Valuation
What is the 'principle of conformity' in Rhode Island real estate?
AAll appraisers must conform to USPAP
BMaximum value is obtained when a property conforms in use, size, and style to surrounding properties✓ Correct
CAll homes in a neighborhood must look the same
DAppraisers must conform their value to the contract price
Explanation
The principle of conformity states that a property achieves maximum value when it is compatible with the surrounding properties. A commercial building in a residential neighborhood violates conformity and will likely have reduced value.
Related Rhode Island Property Valuation Questions
- In a Rhode Island appraisal, what is the purpose of an 'adjustment' in the sales comparison approach?
- What is 'residual value' in Rhode Island real estate appraisal?
- An appraiser notes that a comparable sale in Providence included personal property (appliances) valued at $5,000. To use this sale as a comparable, the appraiser must:
- What does 'arm's length transaction' mean in Rhode Island real estate appraisal?
- What is 'insurable value' in Rhode Island?
- What is 'absorption rate' in Rhode Island real estate analysis?
- An appraiser determines that a Providence property has a functional obsolescence due to an outdated bathroom layout. This type of depreciation is caused by:
- What does 'land residual technique' mean in Rhode Island real estate appraisal?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →