Which of the following best describes the principle of conformity?

The principle of conformity suggests that a property's value is enhanced when it is similar to surrounding properties in terms of style, size, and quality. This principle is grounded in the understanding that properties tend to achieve higher values when they conform to the norms and expectations of the neighborhood or market in which they are located. Therefore, a property that aligns with market demand—meaning it reflects the common characteristics desired by buyers in that area—will maintain or potentially enhance its value.

This principle emphasizes the importance of uniformity within a market or neighborhood. If properties are similar, buyers tend to find value in them, leading to stable prices. When properties diverge significantly from the typical characteristics of their surroundings, their value may decline, as they may not meet the expectations of potential buyers. Thus, the connection to market demand is a crucial aspect of conformity, directly impacting property valuation.