Which principle involves the idea that similar properties should have similar values?

The principle that involves the idea that similar properties should have similar values is best captured by the concept of conformity. This principle suggests that in a given market, properties that share similar characteristics—such as location, size, and amenities—should generally be valued similarly in order to reflect their comparable nature. This is foundational in property assessment, as it ensures fairness and consistency in valuation based on comparable sales, rental amounts, and market trends.

Conformity helps maintain market stability by ensuring that there is not a wide disparity in values for properties that are alike, which could distort market perceptions and investment decisions. When valuing properties, assessors utilize the principle of conformity to justify and rationalize assessments, ensuring that similar properties do not exhibit disproportionate value differences that would mislead stakeholders.

This emphasis on comparing like properties is inherently linked to the methods used in property appraisal, which often revolves around the comparable sales approach. Values determined through this method consider the principle of conformity to align the market values of similar properties, contributing to a more equitable and accurate assessment process.