According to the principle of conformity, value is created by what?

The principle of conformity states that maximum value is achieved when a property is consistent with the surrounding properties in terms of style, design, and use. This principle suggests that a property’s value is enhanced when it is similar to other properties in the area, highlighting the importance of harmony and consistency within a neighborhood or community.

When properties conform to the typical characteristics of the area, they become more desirable, thus increasing their market value. Buyers typically prefer neighborhoods where properties share similar attributes, such as size, architecture, and use. This collective uniformity fosters a sense of stability and comfort within a community, which can further boost property values.

In contrast, the other concepts such as anticipation, substitution, and contribution pertain to different valuation principles. Anticipation relates to the buyer's expectation of future benefits from the property, substitution focuses on the idea that a buyer will not pay more for a property than the cost of an equally desirable substitute, and contribution discusses how a part of a property contributes to the overall value of the whole. While these principles are relevant in real estate appraisal, they do not specifically address how conformity creates value as directly as the principle of conformity does.