Property Valuation
In New York, 'assemblage' of two or more parcels to create a development site will generally produce a value:
AEqual to the sum of the individual parcel values
BGreater than the sum of the individual parcel values (plottage value)✓ Correct
CLess than the sum of the individual parcel values
DDetermined solely by the zoning designation
Explanation
Assemblage often produces a combined value greater than the sum of the individual parcels because the larger parcel may be suitable for uses or densities not possible with the smaller, separate parcels. This premium is called plottage value.
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Related New York Questions
- In New York, the term 'plottage' (or assemblage) refers to an increase in value resulting from:Property Valuation
- In New York, an assessor determines a property's 'assessed value' for tax purposes, which is often expressed as a percentage of:Property Valuation
- In New York, an 'as-improved' vs. 'as-proposed' appraisal of a development site means:Property Valuation
- Plottage value refers to:Property Valuation
Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
AppraisalA 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.
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