The potential additional value created by combining two adjacent lots is referred to as what?

The term describing the potential additional value generated by combining two adjacent lots is known as plottage. This concept arises from the idea that the combined value of the two lots, when brought together, can be greater than their individual values if sold separately. The increase in value is often attributable to factors such as improved access, a larger usable space, or the ability to develop more intensively than would be possible with each lot alone.

In California real estate, understanding plottage is crucial for appraisers and investors, as it can significantly impact decisions related to land acquisitions and property development. By recognizing that the whole can be more valuable than the sum of its parts, real estate professionals can maximize investments through strategic land use and development.

Other options, while relevant in various contexts of real estate, do not pertain to the value derived from combining adjacent properties. Scarcity relates to the limited availability of a resource, assemblage refers to the act of combining parcels of land rather than the value created by doing so, and accretion describes the gradual addition of land by natural forces, which is unrelated to the concept of combining lots for increased value.