Property Valuation
Plottage value (assemblage) occurs when:
AA property loses value due to being subdivided into smaller lots
BTwo or more adjacent parcels are combined, creating a combined value greater than the sum of the individual values✓ Correct
CA property gains value through improvements that exceed neighborhood standards
DZoning changes allow higher-density development on a parcel
Explanation
Assemblage is combining adjacent parcels under one ownership. Plottage is the increment of value created because the combined parcel is worth more than the sum of individual parcels, as the larger site typically enables a more valuable and efficient use.
Related California Property Valuation Questions
- What is 'comparables' (comps) in real estate?
- The principle of substitution states that:
- What does 'plottage' refer to?
- In the income approach, what is the 'capitalization rate' (cap rate)?
- What is 'assemblage' in real estate?
- An appraiser determines that the highest and best use of a parcel is for commercial development, not its current residential use. How does this affect the appraisal?
- In a 'buyer's market,' real estate prices tend to:
- The principle of substitution states that:
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