Property ValuationIntermediateCalifornia Exam

Plottage (assemblage) refers to:

AThe process of subdividing a large parcel, as typically applied in a comparative market analysis
BThe increased value created by combining two or more adjacent parcels into one larger parcelCorrect
CThe reduction in value from excess land, consistent with USPAP appraisal standards
DMapping property boundaries, per standard California valuation practice

Why The increased value created by combining two or more adjacent parcels into one larger parcel Is Correct

Answer B: The increased value created by combining two or more adjacent parcels into one larger parcel

Assemblage is the combining of two or more adjacent parcels. Plottage is the increased value that results from assemblage — the combined parcel is worth more than the sum of its individual values due to greater development potential.

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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