Plottage In Real Estate
The definition of plottage in real estate is simple. When you combine multiple pieces of land into one large parcel, the plot appreciates in value. This is not to be confused with the process of combining multiple plots of land into a single larger plot, which is known as assemblage in real estate.
Plottage in real estate is very common in urban areas that have large areas areas covered with small, undeveloped, individually owned parcels of land. Firms will buy up large quantities of these individually owned plots and combine them into large plots perfect for the development of condominium complexes or other types of real estate developments. This is what plottage in real estate development means.
Examples of plottage in real estate
Plottage in real estate can occur in a variety of different scenarios. As previously shown, plottage is most common where there are large areas of undeveloped land in close proximity to urban population centers, but it occurs under other scenarios as well.
Another common instance of plottage in real estate is that of suburban areas transitioning into larger commercial holdings. Firms buy up plots of land in suburban areas to make way for the growth of cities in order to construct larger commercial complexes, such as shopping malls or office spaces.
An additional example of plottage in real estate often occurs with the expansion of agricultural firms, where expanding farming operations require more land on which to grow crops or livestock. Expanding farming operations will buy up plots of land surrounding theirs and construct the necessary structures and install the necessary machinery for their agricultural operations.
These are just a few of the many examples of plottage in real estate. Plottage is very common in quickly developing cities and other fast-growing areas of the country, and its occurrence and effects can be observed throughout the entire country.
Popular Real Estate Terms
The prime rate, a benchmark interest rate banks use, plays a significant role in the real estate market. Essentially, it’s the interest rate that commercial banks charge their most ...
An offering of securities, stock and/or debt, directly to investors rather then through the public exchange markets. An advantage of a private placement to a real estate business is that ...
(1) Judgment against a defendant who does not respond to the plaintiffs lawsuit or fails to appear in court at the hearing or trial date. (2) Judgment issued by the court against the ...
Formal statement by an auditor, after through examination and consideration, as to whether a real estate company's financial statements fairly present financial position and operating ...
The appraisal approach is used to estimate the value of an asset, based on various factors to reach the closest educated guess of the asset. While an appraisal approach does consider the ...
Judicially determined minimum selling price for auctioned property. For example, a judge rules that a foreclosed home may be sold for less than $200,000, ...
person designating an agent to act for him. Primary individual having full financial liability. Amount being risked in a real estate investment. Owner of a real estate business. ...
A reciprocal transfer of property from one entity to another. A market for securities of a real estate companies, such as the New York Stock Exchange (NYSE) ...
Legal proceeding whereby a person's property is attached and used to pay an obligation. The employer may withhold part of the employee's salary to the court until the debt has been paid. ...
Have a question or comment?
We're here to help.