Conformity
National Real Estate Exam glossary · National Real Estate Exam
Definition
The valuation principle that maximum value is realized when a property is in harmony with its surroundings—similar in use, size, and style to neighboring properties. Related corollaries are progression (a lesser property gains value near better ones) and regression (a superior property loses value among lesser ones).
Conformity in plain English
Conformity is the idea that a house is worth the most when it fits in with the houses around it — similar size, style, and use. Think of a street of tidy three-bedroom homes: a house that matches them sells easily because buyers know what to expect. Two spin-offs of this: 'progression' means a modest home gets a little value boost from being surrounded by fancier ones, while 'regression' means a mansion loses value if it's stuck on a block of run-down houses. In short, being the oddball — too grand or too plain for the neighborhood — usually hurts your price.
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide