Property Valuation
In Iowa appraisal, the term 'plottage increment' refers to:
AThe value lost when a large parcel is subdivided
BThe additional value created when adjacent parcels are assembled into a larger, more valuable unit✓ Correct
CThe increment in value from rezoning
DThe increase in value from adding improvements to land
Explanation
Plottage increment is the additional value resulting from assemblage—combining smaller parcels into a larger parcel that is worth more than the sum of the individual parcels.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
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.
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