Property ValuationIntermediateArizona Exam

Plottage (assemblage) value in Arizona real estate refers to:

AThe decrease in value caused by combining parcels of different uses
BThe increased value created when two or more adjacent parcels are combined into one larger parcelCorrect
CThe value added by rezoning a commercial property to residential
DThe value of air rights above an existing building

Why The increased value created when two or more adjacent parcels are combined into one larger parcel Is Correct

Answer B: The increased value created when two or more adjacent parcels are combined into one larger parcel

Plottage (or assemblage) refers to the increased value created when two or more smaller adjacent parcels are merged into one larger parcel. The combined value often exceeds the sum of the individual parcel values.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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