Value concepts
Principle of conformity
Value is maximised where the properties in an area are reasonably similar
Not uniformity for its own sake. A neighborhood of broadly comparable properties gives buyers a stable frame of reference and gives appraisers a supply of usable comparables, and both of those hold value up. Progression and regression are what conformity looks like when it is broken at one end of a street or the other.
Easily confused with
Contribution asks what one improvement adds to one property. Conformity asks whether the property fits the neighborhood at all, and an over-improvement usually fails both tests at once.
How the exam asks about it
Named directly, and it is also the principle underneath any item about the largest house on a modest street or a single luxury build in an area of small ones.
Quick check: Principle of conformity
One question. Pick an answer to see the explanation.
Which term is being defined: “Value is maximised where the properties in an area are reasonably similar”?
Related terms
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