conformity principle

conformity principle

An appraisal principle holding that the more a property's components are in harmony with the surrounding properties or components,the more they contribute to value.

Example: A 5,000-square-foot home with a three-car garage and an inground pool is more valuable in a neighborhood filled with similar properties than it would be in a neighborhood of 2,500-square-foot homes with two-car garages and no pools.

References in periodicals archive ?
The ATB held (43) that a corporate shareholder prohibited for Federal tax purposes from claiming a dividends-received deduction (DRD) for amounts distributed by its REIT was also barred from taking a DRD for state tax purposes under general Federal conformity principles.