Property ValuationIntermediateCalifornia Exam

What does 'plottage' refer to?

AA plot of land, under standard appraisal methodology

BThe increased value created when smaller parcels are combined into one larger parcelCorrect

CA type of survey map, as typically applied in a comparative market analysis

DThe legal description of a property, consistent with USPAP appraisal standards

Why The increased value created when smaller parcels are combined into one larger parcel Is Correct

Answer B: The increased value created when smaller parcels are combined into one larger parcel

Plottage is the increment of value that results from assemblage — combining smaller parcels into a larger, more valuable single parcel worth more than the sum of its parts.

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

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

People Also Study

Key Terms to Know

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Capitalization Rate (Cap Rate)

A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.

Gross Rent Multiplier (GRM)

A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

Study This Topic

Property Valuation Guide

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →