Property Valuation
The principle of conformity states that value is maximized when:
AAll properties in an area have the same owner
BA property is similar in use, design, and quality to surrounding properties✓ Correct
CThe property conforms to the highest and best use analysis
DThe property conforms to all current building codes
Explanation
The principle of conformity holds that maximum value is achieved when a property is reasonably similar to its neighbors in terms of use, size, design, and quality. A property that is significantly different (much larger or smaller, different use) may experience value loss.
Related Tennessee Property Valuation Questions
- The 'highest and best use' of a property is defined as the use that is:
- A Tennessee appraiser who accepts an appraisal assignment contingent on the result exceeding a certain value is:
- An appraisal is defined as:
- The cost approach to value is most reliable for:
- In the income approach, effective gross income (EGI) is calculated as:
- In Tennessee, an appraiser who determines that a property's highest and best use is different from its current use will likely:
- In Tennessee, an appraiser's 'limiting conditions' and 'assumptions' in a report are important because they:
- In the income approach, a low capitalization rate indicates that a property:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →