What does the term "assemblage" refer to in property valuation?

The term "assemblage" in property valuation refers to the process of combining multiple parcels of land into one larger parcel. This practice is significant in real estate because it can lead to enhanced value due to the potential for larger developments or improved utility of the combined property. When parcels are brought together, they often create opportunities for more efficient use, capitalizing on economies of scale, and satisfying zoning requirements more effectively than smaller, individual lots could.

The increase in size and the potential for unified development often result in a value that exceeds the sum of the individual parcels' values, which is a concept known as "plottage." This term recognizes that a larger parcel can be more desirable and valuable than separate smaller parcels due to the various possibilities it offers to developers, investors, or end-users.

The other options outline different concepts. For example, dividing multiple parcels refers to "subdivision," assessing market value of a single property pertains to valuation methods such as the sales comparison approach, and the increase in property value due to renovations is commonly described as "capital improvement," but does not relate to the concept of assemblage.