A property owner buys an adjacent parcel and combines it with the original parcel to create a property with a higher value than the total of the two separate property values. The operative principle of value in this situation is called?

Question

Social Studies

Yareli Estrada

21 February, 06:19

A property owner buys an adjacent parcel and combines it with the original parcel to create a property with a higher value than the total of the two separate property values. The operative principle of value in this situation is called?

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Answers (1)

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Esperanza Terrell · Answer 1

Answer: Assemblage

Explanation:

Definition

When one has one portion of the land that they need to sell but if the buyer purchase only this portion it won't give them any value however if they buy and combine two parcel of the land then there is a much added value, the combination of these two is what is referred to as assemblage in real estate. The owner may also get to sell them at a higher price when combined than when they sell them separately.

Knowing that the property will give the buyer a higher value when combined will give them a motivation to pay a higher price than he would have if he was buying only one parcel.