Property ValuationIntermediateDelaware Exam
What is 'plottage' in real estate valuation?
AThe increase in value when adjacent parcels are combined into a single parcelCorrect
BThe value added by landscaping improvements
CThe loss in value from irregular lot shape
DThe premium paid for a corner lot
Why The increase in value when adjacent parcels are combined into a single parcel Is Correct
Answer A: The increase in value when adjacent parcels are combined into a single parcel
Plottage (assemblage value) refers to the increase in value that results from combining two or more adjacent parcels into one larger parcel. The combined parcel is often worth more than the sum of the individual parcels.
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.
Related Delaware Property Valuation Questions
- In Delaware appraisal practice, what is 'highest and best use'?Property Valuation
- What is an 'appraisal management company' (AMC) and its role in Delaware real estate transactions?Property Valuation
- The sales comparison approach to value is most appropriate for:Property Valuation
- In the income approach, before applying the cap rate, the appraiser must estimate:Property Valuation
- What is 'scarcity' as a principle of real estate value in Delaware?Property Valuation
- What is 'functional obsolescence' in real estate appraisal?Property Valuation
- In the income approach, what does a lower capitalization rate indicate about a Delaware investment property?Property Valuation
- A Delaware property is assessed at $180,000 with an assessment ratio of 60% of market value. What is the estimated market value?Property Valuation
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →