What is the term for the increase in value resulting from the assemblage of two or more adjacent lots?

The term that refers to the increase in value resulting from the assemblage of two or more adjacent lots is plottage. This concept is significant in real estate appraisal as it captures the idea that when separate properties are combined, the total value of the new, larger property can exceed the sum of the individual properties' values. This increase in value, known as plottage, often arises due to enhanced usability, such as allowing for a larger development or better site visibility, which can be more beneficial than the individual plots operating separately.

Valuation, while pertinent to the appraisal process, does not specifically describe the increase in value from the combination of lots. Assemblage refers more to the actual act of combining the properties rather than the resulting increase in value. Substitution relates to the principle that a buyer will not pay more for a property than what they could pay for a comparable substitute, which doesn’t directly pertain to the increase in value from combining lots. Overall, plottage captures the essence of the added value from merging adjacent lots in a way that the other terms do not.