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Parcels A, B, and C are located side by side and owned by three different owners. A is worth $20,000, B is worth $27,000, and C is worth $16,000 for a total of $63,000. A developer believes that if all three can be purchased, the larger parcel would be worth $85,000. By assembling these under one owner they would be worth $22,000 more than their individual values. This demonstrates which principle of value?
a) Contribution
b) Substitution
c) Plottage
d) Regression

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Ashpreet21

Answer:Therefore, the correct answer to this question is c) Plottage. This is because the developer’s plan to purchase and combine parcels A, B, and C would create a plottage value of $22,000, which is the difference between the individual values ($63,000) and the larger parcel value ($85,000).

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