Value definition for plottage?

[CANative]

Lowest value property I've ever appraised and it may be one of the tougher ones. Property owner wants to know what his lot is worth. He lives in another state and has never seen this parcel. The parcel is 25 x 100 and is substandard due to size (the city subdivided these parcels many years ago intending for people to put up singlewides.) The street (such as it is) stops right before you get to this lot and turns into a dirt foot trail that people use to dump on. The parcel has is bracketed by two other 25 x 100 lots, all three in different ownership. The lots are not buildable due to size. For $1200 you can merge two lots into a buildable lot which would be worth about $30,000. But you also have to build the street to the satisfaction of the city (it wouldn't take much because most of the roads back here are dirt and very poorly maintained.)

So as a stand alone parcel it has almost no value. The only market is for someone who would buy (or already owns) one of the two adjacent properties for purposes of plottage.

Is there such a value definition as "Plottage Value" and can I use the AI definiition of "Plottage" as the source for the definition?

It's certainly not market value. Exposure time is not relevant either because it would only be purchased if an when someone wanted to develop a buildable lot by assemblage with one or both of the surrounding lots.:Eyecrazy:

plottage
The increment of value created when two or more sites are combined to produce greater utility. See also assemblage.

 

[xm39hnu]

A real stinker. But you're appraising the property as-is, aren't you? I think you need a value for the single lot in unbuildable condition. Telling the client what his lot would be worth if combined with an adjacent lot might be useful information, but it doesn't tell him what to sell the lot for.

This is one of those tricky ones, like the guy who built his dock on his neighbor's lot, and wanted to know what a 16 x 200' strip would be worth. Simple on its face, but ugly in execution.

If the purpose is to develop MV, then you have to do it at the H&BU of the subject, which is to combine it with an adjoining lot and (improve || leave vacant). But that doesn't tell you what the lot is worth as it exists (uncombined.)

Let's see what that boat dock crowd has to say. (That was a good thread!)

 

[Marcia Langley]

Greg,

You are on the right track. But I think you would have to also address the Market Value of the hypothetically assembled lots in order to be able to describe the incremental value of plottage. I'm not sure you could isolate the contribution to total value which was contributed by only one of two identically non-utile lots.

I mean if neither lot has value now but would be worth $30,000 if assembled, the I'm not sure you could determine how much of the $30,000 plottage was attributable to one lot.

I'm thinking the one who buys the second lot is getting a $30,000 property minus whatever cost to combine the lots, and maybe build the road. Maybe the entire plottage should be attributed to the one lot.

 

[Brian Weaver]

Increment in the value of land comprised by assemblage of smaller plots into one ownership.

Dictionary of Real Estate Terms
published by Barron's

 

[Ms. Janet]

The parcel is 25 x 100 and is substandard due to size (the city subdivided these parcels many years ago intending for people to put up singlewides.)

The city subdivided the land and created the smaller lots for a permitted use........... and then what happened to make it not buildable now? Rezoning? Eminent Domain?

 

[Fred]

Greg,
Sounds like one them where the HBU is --
to help hold that part of the planet together.

How about growing tomates and seeking a property tax exemptions, parking a hot dog car on it? Any use?

This would definitely be a time when a corner is less valuable - only one side owner to plot with.

 

[CANative]

Here's the "road" in



Here's the lot

 

[CANative]

So what's the value?

This is another one of those gamesmanship deals.

If you already own one of the other parcels this one can be the other piece of the puzzle. Who blinks first? And what happens until someone blinks?

 

[Carnivore]

Greg,

Gamesmanship indeed. Your owner needs to collaborate with one of the others so that both can benefit. Then the gamenship begins with the third man out.

 

[Mark K]

It call to mind a "remnant parcel", i.e., small parcel remaining after a road or project cuts a larger parcel into two pieces and the smaller parcel is usable only to an adjoining owner. In this area, these parcels are damaged 75-90% per studies.

Value = (Assembled parcel value ($30K) - $1,200 - cost of road) x (10-25%)?

Road = couple loads of stone and some dozer time, $1,000.

"So what's the value?"

$30K - $1,200 - $1,000 = $27,800 x 10% = $2,780, rounded to $2,800.

Forgot lot clean up cost, another $300. $2,500.





Where can I pick up my check?