Which principle of value states that a property's value is influenced by how well it conforms to its surroundings?

The principle of value that states a property's value is influenced by how well it conforms to its surroundings is conformity. This principle asserts that properties that are similar in location, style, age, and use tend to have a higher value when they are in harmony with the surrounding environment. When a property is consistent with its surroundings, it enhances its marketability and perceived value; for example, a well-maintained home in a neighborhood of similar homes typically retains or increases its value more effectively than one that drastically differs in design or condition.

Conformity applies to various aspects of property characteristics, ensuring that the overall uniformity in a neighborhood contributes to the desirability and stability of property values. Buyers generally prefer properties that fit well within the established characteristics of the neighborhood, leading to stronger demand and higher prices for conforming properties. This principle is essential for appraisers and assessors to understand as they evaluate and determine property values.