Certified Pennsylvania Evaluator Practice Exam

What is typically a result of Plottage?

1. Increase in property value more than the sum of the individual parcels.

2. Decrease in overall marketability of the property.

3. No change in property value regardless of parcel size.

4. Stagnation in real estate growth potential.

The correct answer is: Increase in property value more than the sum of the individual parcels.

Plottage is the combined value that arises from the consolidation of two or more adjacent parcels of land into a single larger parcel. It is typically based on the principle that the whole is worth more than the sum of its parts. This concept is crucial in real estate because when parcels are combined, they can be developed more efficiently or used in ways that wouldn't be possible if kept separate, such as creating a larger commercial complex or improving access to amenities. Therefore, the correct answer indicates that plottage results in an increase in property value greater than the sum of individual parcels. This increase in value can come from various factors, including enhanced utility, improved access, and potential for more profitable development options. While the other options suggest various outcomes such as decreased marketability or stagnation in value, these do not accurately reflect the positive impact of merging properties, which typically is to create a more desirable, higher-valued product in the real estate market.