Two adjoining parcels are worth $200,000 and $150,000 separately. Combined they are worth $420,000. What is the plottage value?
Correct Answer
A) $70,000
Why this is correct: Plottage value is the increment in value created by combining two or more parcels. Calculate: Separate value total = $200,000 + $150,000 = $350,000. Combined value = $420,000. Plottage = $420,000 - $350,000 = $70,000. Why the other choices are wrong: $50,000 is the difference between the two parcel values, not the plottage. $220,000 and $420,000 are the individual and combined values, not the increment. Exam tip: Plottage = Value(combined) - Sum of Values(separate). 'Assemblage' is the act of combining; 'plottage' is the value increment.
Why This Is the Correct Answer
Why this is correct: Plottage value is the increment in value created by combining two or more parcels. Calculate: Separate value total = $200,000 + $150,000 = $350,000. Combined value = $420,000. Plottage = $420,000 - $350,000 = $70,000. Why the other choices are wrong: $50,000 is the difference between the two parcel values, not the plottage. $220,000 and $420,000 are the individual and combined values, not the increment. Exam tip: Plottage = Value(combined) - Sum of Values(separate). 'Assemblage' is the act of combining; 'plottage' is the value increment.
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