Real Estate Ownership, Land Use Controls, and Financing Practice Test

When adjacent parcels are combined into a single, larger property, the resulting increase in value is called plottage. This happens because the larger parcel often unlocks better development potential, more efficient layout, or improved access, making the whole worth more than the sum of the parts. For example, two small parcels might each be worth a certain amount on their own, but once assembled, the larger parcel could support a more valuable use or grant additional zoning or utility benefits, raising the total value.

Regression is a decrease in value caused by unfavorable surroundings. Progression is an increase in value of a lesser property when it sits among higher-valued properties. Market price is simply the going price in the market.