Certified Pennsylvania Evaluator Practice Exam

What is the term for the scenario when the combined value of multiple parcels is less than the total of their individual values?

1. Positive Plottage

2. Negative Plottage

3. Segmented Value

4. Combined Value Analysis

The correct answer is: Negative Plottage

The correct term for the scenario in which the combined value of multiple parcels is less than the total of their individual values is negative plottage. This concept refers to situations where the aggregation of land parcels leads to a decrease in value due to various factors, such as inefficiencies in land use, zoning restrictions, or the negative impact of neighboring properties. In this situation, the individual parcels might hold a certain value on their own, but when combined, they may not create a synergistic effect, like increased desirability or utility. Instead, the parcels may have issues that cause them to lose value when considered together, illustrating the principle that sometimes, more is not necessarily better in real estate: the whole can indeed be worth less than the sum of its parts. Understanding negative plottage is essential for evaluators, as it influences how property is assessed and valued in real estate transactions and can guide decisions in land development and planning.