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Define Plottage in Real Estate
Plottage:
Plottage refers to the increase in value that can occur when multiple pieces of land are combined into a larger, contiguous parcel. This increase in value is often due to the fact that a larger parcel can be more valuable or useful than smaller, separate parcels.
Example:
Let's say that two neighboring property owners decide to combine their land to create a larger parcel that can be used for a commercial development. By combining the two parcels, they increase the total amount of land available for development and may be able to attract more businesses or tenants. This increase in value due to the combination of the two parcels is an example of plottage.
"A Deep Dive for Real Estate Agents and Appraisers"
Plottage is an important concept in real estate development and can be a key factor in determining the value of a particular property or group of properties. It is often used in the appraisal of land and can be a significant consideration when determining whether to buy or sell a particular parcel of land.
However, it's important to note that plottage is not always guaranteed. Combining smaller parcels of land may not always result in an increase in value, especially if the new parcel is not well-suited for development or if there are other factors that may limit its usefulness. Additionally, plottage may not always be the only factor to consider when determining the value of a particular property, as other factors such as location, zoning restrictions, and market conditions may also play a role.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh, plottage is value, don't you know,
That's added when land together does go!
When properties contiguous become one,
Their value can increase, and it can be fun!
Two neighbors with land side by side,
Decide to combine and let value ride.
With more land, they can build up high,
And attract more businesses, that's no lie!
The increment of value added by plottage,
Is due to the land's newfound advantage.
A larger parcel can be worth more,
And that's what plottage is all for!