Which appraisal principle states that the greater the similarity among properties, the better they will hold their value?

The principle that states the greater the similarity among properties, the better they will hold their value is known as conformity. This principle emphasizes that properties tend to maintain their value more effectively when they are similar in characteristics, such as design, size, and amenities, to those around them. When properties are in close alignment with the surrounding environment, they benefit from a sense of uniformity which can enhance neighborhood appeal and stability.

A neighborhood with homes that conform to a certain standard or style fosters a desirable living environment, potentially leading to higher property values overall. If a property is drastically different from its neighbors, it might struggle to attract buyers or could be perceived as less valuable due to its lack of conformity with prevailing trends in the area.

Understanding conformity is essential for appraisers and real estate professionals, as it can guide them in assessing property values and making informed decisions about property sales, purchases, and developments.