Texas Real Estate Sales Agent ExamValuation and Market AnalysisEasy
Which of the following principles of value states that maximum value is realized when a property is in harmony with its surroundings?
- APrinciple of Progression
- BPrinciple of Contribution
- CPrinciple of Conformity
- DPrinciple of Regression
Show answer & explanationAnswer & explanation
Correct answer: C. Principle of Conformity
The Principle of Conformity states that a property achieves its maximum value when it conforms to the standards of the neighborhood. This means fitting in with the size, style, and amenities of surrounding properties.
Why the other options are wrong
- A. The Principle of Progression states that the value of a lesser property is enhanced by the presence of surrounding superior properties.
- B. The Principle of Contribution relates to the value added by individual components to the overall property.
- D. The Principle of Regression states that the value of a superior property is negatively affected by the presence of surrounding lesser-quality properties.
Principle of Conformity
An appraisal principle holding that the maximum value is realized when a property is in harmony with or conforms to its surroundings.
- Harmony with neighborhood standards.
- Relates to size, style, condition.
- Contributes to maximum property value.
Memory trick: Conform 'C'orrectly to 'C'ommunity 'C'onditions.