The principle of ______ says that value is created and maintained when the characteristics of a property conforms to its neighborhood.

The principle of conformity asserts that a property's value is enhanced when its characteristics—such as size, style, and use—align with those of the surrounding neighborhood. This principle is rooted in the idea that properties that are similar in nature tend to support and reinforce each other's value. When a property is in harmony with its surroundings, it can benefit from the demand and desirability of the neighborhood, leading to greater overall value.

For example, if a residential home is built within a neighborhood predominantly consisting of single-family homes, a well-designed home that adheres to the style, scale, and function of its neighbors is likely to appreciate in value. Conversely, if a property significantly deviates from the established norms of the area, it may struggle to maintain its value as it could be less desirable to potential buyers.

This principle highlights the importance of understanding local market trends and the significance of neighborhood characteristics in real estate appraisal. Properties that conform to the expectations set by the neighborhood typically experience less depreciation and higher demand, ultimately solidifying their market value.