Principle of Conformity

Definition

• The belief that a dwelling will draw a fair market price if it is located with similar dwellings of the same size, style, and condition.

Synonyms
real estate conformity principle, principle of real estate conformity, conformity principle

Related Terms and Acronyms

• Comparables — Definition,
  • Refers to "comparable properties," which are used for comparative purposes in the appraisal process.
• Cul-De-Sac (Culd, Cldsc) — Abbreviation,
  • A dead-end street, often with a broad circle at the end.
• Current Market Value (CMV) — Acronym,
  • The estimated price determined by the recent sale of similar properties.
• Fair Market Value (FMV) — Acronym, Very Important,
  • The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
• Market Value (MV) — Acronym, Important,
  • Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
• Principle of Progression — Definition,
  • The notion that a smaller house's value will be enhanced if it is near larger, fancier houses.
• Principle of Regression — Definition,
  • The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.
• Property Value — Definition,
  • The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
• Seller's Market — Definition,
  • Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.