How does conformity affect property value according to appraisal principles?

Conformity is a principle in appraisal that suggests property value is influenced by its relationship to surrounding properties and the standards in the neighborhood. When a property adheres to existing standards and characteristics that are comparable to its neighbors, it tends to achieve a higher value due to the notion of uniformity and appeal within that area. This principle is rooted in the idea that properties that conform to the expectations of buyers in a given market—such as architectural style, size, and land use—are often more desirable, which in turn can drive up property values.

For example, a home in a neighborhood where most properties have similar styles and sizes is likely to hold more value than a home that significantly deviates from those norms. Buyers often prefer homes that fit the established criteria because they can anticipate maintenance, neighborhood aesthetics, and community standards. Thus, when properties are developed or renovated to fit seamlessly with the established norms, they generally see an increase in value due to this conformity.

This understanding highlights the importance of adhering to local market standards in real estate development and modification, underscoring the critical role of conformity in sustaining and enhancing property value within a community.