What is an assemblage real estate?
What is an assemblage real estate?
Assemblage: 1) The combining of two or more parcels, usually, but not necessary contiguous, into one ownership or use; the process that creates plottage value 2) The combining of separate properties into units, set, or groups, i.e. integration or combination under unified ownership.
What is the difference between assemblage and plottage in real estate?
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.
What is plottage and assemblage?
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 land assemblage?
A tactic employed in land acquisition, where a real estate professional acquires two or more adjacent parcels, combining them into one. However, the complex process is worth it when the value of the whole (the combined parcels) is greater than the sum of the value of the parts (the individual parcels). …
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 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.
Which aspect of depreciation is almost always incurable?
Chp 7 Unit 9
| Question | Answer |
|---|---|
| Which aspect of depreciation is almost always incurable? | Economic obsolescence |
| A CMA is performed when: | Pricing property. |
| Which of the following is an example of economic obsolescence? | A house abutting a closed factory. |
| Functional obsolescence is due to: | Poor design or floor plan. |
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 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 best way to use land?
A property must be appraised in terms of its highest and best use. The definition of highest and best use is as follows: The reasonable, probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
What is the first test of highest and best use?
The first test of highest and best use simply evaluates whether it is possible to use the land in a certain way. Ignoring the zoning and economics of the proposal, consider whether or not the potential use is physically possible.
What causes external obsolescence?
What’s the difference between Plottage and assemblage in real estate?
The increased usability and value resulting from the combining or consolidating of adjacent lots into one larger lot. Plottage is also referred to as assemblage, although the latter is more often used to describe the process of consolidation.
How does Plottage affect the value of a lot?
This is usually done to increase the value of the individual lots because a larger building capable of producing a larger net return may be erected on the larger parcel. The resulting added value is called plottage value. The developer often makes use of option contracts to tie up the right to purchase the desired adjacent parcels.
How does assemblage increase the value of a lot?
Assemblage — The combining of two or more adjoining lots into one large tract. This is usually done to increase the value of the individual lots because a larger building capable of producing a larger net return may be erected on the larger parcel.
What do you mean by Plottage increment in real estate?
You may also hear the concept referred to as assemblage. The plottage increment refers to the value gained by combining the lots. For example, Steve owns two plots that are right next to each other. Each one is worth $40,000. When combined into a single property, the total value is now $90,000 and the increment is $10,000.