What is plottage value?

What is plottage value?

• A. Deterioration due to encumbrances.
• B. Value of improvements.
• C. The added value from combining adjacent parcels into one larger parcel.
• D. Value of land only.

Answer: (C)

Plottage value is the extra value created when adjacent parcels are combined into a single, larger parcel. By assemblage, you can often achieve a more valuable use—such as higher density, better access, or a more efficient layout—so the assembled parcel is worth more than the sum of the separate parcels. It’s measured as the value of the combined parcel after assemblage minus the total value of the parcels before assemblage. For example, two lots worth 100k each total 200k on their own, but if combining them yields a 260k parcel, the plottage value is 60k. This concept focuses on land value gains from assembling parcels, not the value of improvements or deterioration from encumbrances.

Plottage value is the extra value created when adjacent parcels are combined into a single, larger parcel. By assemblage, you can often achieve a more valuable use—such as higher density, better access, or a more efficient layout—so the assembled parcel is worth more than the sum of the separate parcels. It’s measured as the value of the combined parcel after assemblage minus the total value of the parcels before assemblage. For example, two lots worth 100k each total 200k on their own, but if combining them yields a 260k parcel, the plottage value is 60k. This concept focuses on land value gains from assembling parcels, not the value of improvements or deterioration from encumbrances.