Certified Pennsylvania Evaluator Practice Exam

What is Plottage?

1. The increase in value resulting from combining parcels.

2. The decrease in value from property fragmentation.

3. The process of dividing larger parcels into smaller lots.

4. The assessment of surrounding properties' worth.

The correct answer is: The increase in value resulting from combining parcels.

Plottage refers to the increase in value that occurs when two or more adjacent parcels of land are combined into a single, larger parcel. This increase in value generally arises from the improved utility of the combined land, which can lead to greater development potential, more efficient use of space, and the ability to attract higher offers from buyers due to the larger land size. When parcels are merged, the resulting property can often be more marketable than the individual pieces alone, as it may offer more options for development, larger usable area, or simply a more desirable property location. Additionally, the concept of plottage is based on the idea that the whole is worth more than the sum of its parts due to these enhancements in use and desirability. Understanding plottage is crucial in property valuation, as it can significantly impact financial assessments and investment strategies in real estate.