Which principle of value refers to the concept that properties of similar type should be priced similarly?

The principle of value that refers to the concept that properties of similar type should be priced similarly is known as conformity. This principle suggests that the value of a property is maximized when it is similar to other properties in its location and characteristics. For instance, if a neighborhood has homes of similar size, age, and style, a home that conforms to these characteristics is likely to achieve a higher market value.

When properties deviate significantly from the established norm within a vicinity, such as being significantly larger, more luxurious, or older, their properties might not attract the same market interest, leading to a potential decrease in value. Therefore, conformity emphasizes that properties should be in harmony with the general characteristics of surrounding properties to maintain their value. This principle is important in real estate appraisal and market analysis, as it helps to understand how market values are influenced by the characteristics of similar properties in a given area.