An assemblage of two adjoining parcels produced no increase in total value. What does this most likely indicate?
Correct Answer
A) The combined parcel has no plottage value
If assembled value equals the sum of separate values, there is no gross plottage increment under those indications. Assemblage costs could make the net increment negative. This result alone does not prove that the use is unchanged or that the analysis method is invalid.
Why This Is the Correct Answer
Option A is correct because plottage is the extra value that results when two or more sites are assembled under single ownership and gain utility. If assemblage produced no increase in total value, the combined parcel shows no plottage value under those indications.
Why the Other Options Are Wrong
Option B: The appraiser used the wrong unit of comparison
Option B, that the appraiser used the wrong unit of comparison, does not follow from the result. A lack of value increase from assemblage is a market outcome, not proof of an analytical error.
Option C: The parcels should be valued by ground rent
Option C, that the parcels should be valued by ground rent, is unrelated to the result. Ground rent capitalization is a separate method and is not indicated simply because assemblage added no value.
Option D: The subdivision method must be applied instead
Option D, that the subdivision method must be applied instead, does not follow. The absence of plottage says nothing about whether subdivision analysis is appropriate.
Assemblage is the act, plottage the gain
Assemblage describes putting lots together; plottage is the bonus value, if any, that the combination creates.
How to use: Use this to keep the two terms separate when a question describes combining parcels.
Exam Tip
If combined value equals the sum of separate values, the plottage increment is zero; do not read that result as an error in method.
Common Mistakes to Avoid
- -Confusing assemblage with plottage
- -Assuming any assemblage creates added value
- -Treating a zero increment as evidence of a flawed method
Concept Deep Dive
Analysis
This question tests the definition of plottage. Plottage is the increment of value created when assembling sites produces greater utility. If the assembled parcel is worth no more than the parcels separately, there is no plottage increment.
Background Knowledge
Assemblage is the act of combining adjacent parcels, while plottage is the resulting increase in value when the combined site has greater utility than the separate sites. Assemblage costs can offset or exceed any gross increment.
Real-World Application
A developer buys two adjoining residential lots expecting a premium for a larger building site. Market evidence shows the combined site sells for the same total as the two lots separately, so the appraiser concludes there is no plottage value.
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