Conformity in real estate valuation means that:

Conformity in real estate valuation refers to the principle that the value of a property is influenced by how well it aligns with other properties in its immediate context or neighborhood. When properties within a certain area exhibit similar characteristics, such as size, style, condition, and use, they are said to conform to the neighborhood's norms. This alignment typically leads to an increase in value because buyers are inclined to prefer properties that are compatible with their surroundings, perceiving them as more desirable and stable investments.

Neighborhoods that maintain a level of cohesion in terms of property types and values can enhance the marketability of all properties within that area. This is based on the notion that a well-maintained, uniform neighborhood will appeal more to potential buyers, thereby increasing the perceived value of properties that conform to these standards. Therefore, the correct understanding of conformity emphasizes the importance of fitting within the local real estate context to optimize property value.