Property Valuation
What is the principle of conformity in real estate valuation?
AAll properties in a neighborhood should be identical
BProperties that conform to the surrounding neighborhood tend to achieve maximum value✓ Correct
CAppraisers must conform to USPAP standards
DComparable sales must conform to market conditions
Explanation
The principle of conformity states that properties achieve maximum value when they conform to the surrounding neighborhood in terms of use, style, and quality. A mansion in a modest neighborhood may be worth less than it would be in an upscale area.
Related West Virginia Property Valuation Questions
- In the cost approach to value, the appraiser estimates the value of land separately because:
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- A West Virginia appraiser who fails to make a required disclosure in an appraisal report (such as a prior appraisal of the same property) violates:
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