Property Valuation
In real estate, the principle of 'conformity' states that property value is maximized when:
AAll properties in a neighborhood are identical
BA property conforms to the predominant use and character of the surrounding area✓ Correct
CA property is larger than all surrounding properties
DAll properties follow the same deed restrictions
Explanation
The principle of conformity holds that property values are maximized when a property is consistent in size, style, and use with the surrounding neighborhood. A house that is much larger or smaller than neighborhood norms, or one that is a commercial use in a residential area, will not achieve maximum value because it lacks conformity with surrounding properties.
Related Texas Property Valuation Questions
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