Plottage value in real estate refers to:
Why The additional value created when two or more parcels are combined (assembled) into one Is Correct
Answer B: The additional value created when two or more parcels are combined (assembled) into one
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.
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Related North Carolina Questions
- The 'assemblage' of multiple smaller parcels into one larger parcel may create 'plottage value' because:Property Valuation
- Plottage value refers to:Property Valuation
- The sales comparison approach to value is most appropriate for:Property Valuation
- The income approach to value uses which formula?Property Valuation
Key Terms to Know
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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