What is assemblage and plottage in real estate?
Plottage is the increase in value realized by combining adjacent parcels of land into one larger parcel. The process of combining the parcels is known as assemblage. Generally, the value of the whole parcel will be greater than the sum of the individual smaller parcels.
What is an assemblage plan?
Assemblage is the process of joining several parcels to form a larger parcel; the resulting increase in value is called plottage. Assemblage — The combining of two or more adjoining lots into one large tract. … The developer often makes use of option contracts to tie up the right to purchase the desired adjacent parcels.
What is an assemblage in commercial real estate?
When two parcels (or more) of land are combined to be sold as one parcel together, this is assemblage in real estate. Typically, the two parcels, when combined, may bring in a larger price than the properties would if they were sold separately.
What does potential assemblage mean?
Interested parties identify two or more adjacent lots that have the potential to be combined. The larger combined lot resulting from this combination provides many more development opportunities and increased land value. Assemblage developments can either be for commercial or residential property development uses.
What is highest and best use in real estate?
Highest and Best Use, Defined
The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.
What is functional obsolescence in real estate?
What Is Functional Obsolescence? … For example, in real estate, it refers to the loss of property value due to an obsolete feature, such as an old house with one bathroom in a neighborhood filled with new homes that have at least three bathrooms.
What is the difference between excess and surplus land?
Remember, excess land is land that is not needed to serve or support the existing improvement. Excess land can be partitioned, sold separately, and valued separately. Surplus land is land that is not needed to serve or support the existing improvement, but it cannot be separated from the property and sold off.
What is contribution in real estate?
The principle of contribution states that the worth of an improvement is what it adds (or contributes) to the market value of the entire property, not what it cost to add the improvement. This is a key factor when deciding to add to existing improvements.
What does the principle of substitution say?
The Principle of Substitution is the basis for the market data approach to appraisal. This principle says that the maximum value of a property usually is established by the cost of acquiring an equivalent substitute property that has the same use, design, and income.
What does regression mean in real estate?
The principle of regression is a term used by real estate appraisers stating that the value of high-end real estate may be diminished by having lower-end properties in the same vicinity. This principle is used frequently in writing zoning laws, which strive to keep business and residential areas separate.
Why does a real estate professional need a license?
A real estate agent license (also simply called a “real estate license”) is the state-issued license that allows the holder to assist the general public in the leasing, buying and selling of real estate. You can’t legally work as a real estate agent without having an active state-issued real estate agent license.
What is an assemblage of land?
A tactic employed in land acquisition, where a real estate professional acquires two or more adjacent parcels, combining them into one. Land assemblage can be a time-consuming, complicated process – with the complexity increasing exponentially depending on the number of parcels and land owners.
What is external obsolescence in real estate?
External Obsolescence is a form of depreciation caused by factors not on the property itself, such as environmental, social, or economic forces. An example would be a very nearby garbage dump. The homeowner cannot reverse this loss in value by spending money to fix something.
What is another word for Plottage?
Plottage Synonyms – WordHippo Thesaurus.
What is another word for plottage?