Principles of Real EstateQuestion 20 of 100
The concept that property value tends to be maximized when there is reasonable similarity among properties in a neighborhood is called:
a.Anticipation
b.Conformity
c.Change
d.Competition
Explanation
The principle of conformity states that homes maintain and increase value when they are reasonably similar in style, size, and quality to surrounding properties. Sharp differences can drag value through regression or lift it through progression. Anticipation ties value to expected future benefits.
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