Plottage value arises in which of the following situations?
Correct Answer
D) Adjoining parcels are combined into a larger one
Why this is correct: Plottage value is the incremental value created when combining adjacent parcels into a single, larger site that enables a more valuable use than the separate parcels could support individually. Why the other choices are wrong: "A large parcel is divided into many smaller lots" describes subdivision, not plottage. "A site is encumbered by a recorded utility easement" describes an encumbrance, which typically reduces value. "Zoning is changed to a more restrictive category" usually reduces potential use and value. Exam tip: Plottage = putting pieces together to create extra value. Think 'whole greater than sum of parts.'
Why This Is the Correct Answer
Why this is correct: Plottage value is the incremental value created when combining adjacent parcels into a single, larger site that enables a more valuable use than the separate parcels could support individually. Why the other choices are wrong: "A large parcel is divided into many smaller lots" describes subdivision, not plottage. "A site is encumbered by a recorded utility easement" describes an encumbrance, which typically reduces value. "Zoning is changed to a more restrictive category" usually reduces potential use and value. Exam tip: Plottage = putting pieces together to create extra value. Think 'whole greater than sum of parts.'
More Land/Site Questions
Under which condition is the land residual technique most applicable?
Why can the same physical parcel carry different values in two assignments?
In a built-up area where no vacant land has sold for years, which approach to site value is the usual fallback?
How is entrepreneurial profit treated in the subdivision development method?
A land comparable sold 18 months ago in a market rising about 4 percent a year. What adjustment direction applies?
Why does a developer's required profit rise for a longer subdivision project?
How does holding cost enter the valuation of land bought for future development?
Excess land is best described as land that has which characteristic?
Which of the following is an off-site improvement rather than a site improvement?
Vacant lots in a subdivision sell for about $80,000 while finished homes there sell for about $400,000. Applying that relationship to a subject home that sold for $525,000, what site value does allocation indicate?
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