Certified Pennsylvania Evaluator Practice Exam

What does ‘Assemblage’ typically enhance in real estate?

1. Legal ownership of a property.

2. Market value of combined properties.

3. Property size and area.

4. Accessibility of local amenities.

The correct answer is: Market value of combined properties.

Assemblage refers to the process of combining two or more parcels of real estate into a single larger parcel. This action often enhances the market value of the combined properties due to several factors. When properties are assembled, they can provide greater development potential, such as a larger area for commercial or residential projects, which can lead to increased demand. Wider land can facilitate more extensive projects that might not be feasible on smaller parcels; thus, developers may be willing to pay a premium for the potential return on investment that a larger, unified site offers. Additionally, assemblage can result in economies of scale, where the costs of development or operation decrease when dealing with a larger property. This makes the property more attractive to potential buyers or investors, further elevating its market value. Other potential benefits include improved zoning opportunities and enhanced visibility, which are factors that typically contribute positively to market value.