Property Valuation
A North Dakota appraiser values a large lot and a small lot in the same neighborhood. The smaller lot typically sells for more per square foot because of:
APrejudice against large lots
BThe principle of contribution and plottage — larger lots may have surplus land with diminishing per-unit value✓ Correct
CBuilding code restrictions
DNo reason; price per square foot is always equal
Explanation
In real estate, larger lots do not always yield proportionally higher prices per square foot. Plottage value (the added value from combining parcels) applies to assemblages, but within a given neighborhood, surplus land above what is needed for the improvement often yields less per unit than the core building site.
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