Property Valuation
The economic principle of 'plottage' refers to:
AThe decrease in value of a property due to external forces
BThe increased value created when adjacent parcels are combined (assembled) into one larger parcel✓ Correct
CThe maximum density of development allowed under current zoning
DThe process of dividing a large parcel into smaller lots for sale
Explanation
Plottage (or assemblage value) is the increment of value gained when two or more adjacent parcels are combined into a single, larger tract. The combined value often exceeds the sum of the individual parcel values because the larger parcel may support a higher and better use.
Related California Property Valuation Questions
- What is the difference between 'value in use' and 'market value'?
- Functional obsolescence differs from physical deterioration in that it results from:
- When adjusting a comparable sale in the sales comparison approach, an appraiser ADDS value to the comparable when the comparable is:
- External obsolescence (economic obsolescence) differs from other depreciation types because it is:
- A Comparative Market Analysis (CMA) prepared by a real estate agent is:
- A property generates an NOI of $60,000. Comparable properties sell at a 5% cap rate. What is the indicated value using the income approach?
- A property generates a net operating income of $50,000 and is valued using a 5% cap rate. What is the estimated value?
- The 'highest and best use' of a property is defined as the use that is:
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