Property Valuation
What is a 'plottage increment' (assemblage value) in real estate and how might it affect a Pennsylvania urban property?
AThe value added by installing a parking plot on a vacant lot
BThe additional value created when combining multiple smaller parcels into a larger one, often exceeding the combined value of the individual parcels✓ Correct
CThe increase in value from plotting (subdividing) a large parcel into smaller lots
DA Pennsylvania Real Estate Transfer Tax exemption for assembled parcels
Explanation
Plottage (assemblage value) is the increment in value created by combining multiple adjoining parcels into a single larger parcel. The assembled parcel may be worth more than the sum of its parts because it enables a larger, more economically efficient development that individual parcels couldn't support. In Philadelphia, Pittsburgh, and other Pennsylvania urban markets, land assemblage for major development projects creates significant plottage value — but assembling multiple parcels requires negotiating with multiple owners, creating a 'holdout' problem.
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