When two parcels (or more) of land are combined to be sold as one parcel together, this is assemblage in real estate. Typically, the two parcels, when combined, may bring in a larger price than the properties would if they were sold separately.
What is an assemblage in real estate?
Assemblage: 1) The combining of two or more parcels, usually, but not necessary contiguous, into one ownership or use; the process that creates plottage value 2) The combining of separate properties into units, set, or groups, i.e. integration or combination under unified ownership.
What is an assemblage plan?
Assemblage is the process of joining several parcels to form a larger parcel; the resulting increase in value is called plottage. Assemblage — The combining of two or more adjoining lots into one large tract. … The developer often makes use of option contracts to tie up the right to purchase the desired adjacent parcels.
What does potential assemblage mean?
The basic idea involves pursuing an area of land that has more value than current occupants realize. Interested parties identify two or more adjacent lots that have the potential to be combined. … Assemblage developments can either be for commercial or residential property development uses.
What is the principle of assemblage?
Assemblage theory asserts that, within a body, the relationships of component parts are not stable and fixed; rather, they can be displaced and replaced within and among other bodies, thus approaching systems through relations of exteriority.
What is the difference between assemblage and Plottage?
Plottage is the increase in value realized by combining adjacent parcels of land into one larger parcel. The process of combining the parcels is known as assemblage. Generally, the value of the whole parcel will be greater than the sum of the individual smaller parcels.
What does no situs mean?
In law, the situs (pronounced /ˈsaɪtəs/) (Latin for position or site) of property is where the property is treated as being located for legal purposes. … The English common law rules, which apply in most common law jurisdictions, are in outline as follows: the situs of real estate (land) is where it is located.
What does highest and best use mean in real estate?
Highest and Best Use, Defined
The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.
What is contribution in real estate?
Contribution – An appraisal principal which holds that the value of real property is greatest when the improvements produce the highest return commensurate with their cost (the investment). Also called the principal of increasing and decreasing returns.
What is cost approach in real estate?
The cost approach is a real estate valuation method that estimates the price a buyer should pay for a piece of property is equal the cost to build an equivalent building. In the cost approach, the property’s value is equal to the cost of land, plus total costs of construction, less depreciation.
What does regression mean in real estate?
The principle of regression is a term used by real estate appraisers stating that the value of high-end real estate may be diminished by having lower-end properties in the same vicinity. This principle is used frequently in writing zoning laws, which strive to keep business and residential areas separate.
What does dedication mean in real estate?
A dedication is the conveyance of private land, either in fee simple or as an easement, for public use. The landowner can convey the property according to dedication procedures defined by statute or as a common law dedication through deed or implied conduct.
What does accretion mean in real estate?
accretion. n. 1) in real estate, the increase of the actual land on a stream, lake or sea by the action of water which deposits soil upon the shoreline. Accretion is Mother Nature’s little gift to a landowner.
How do Deleuze & Guattari define an assemblage?
According to Deleuze and Guatarri, assemblages are coded by taking a particular form; they select, compose, and complete a territory. In composing a territory, there exists the creation of hierarchical bodies, in the process of stratification.
What is leverage in real estate?
Leverage uses borrowed capital or debt to increase the potential return of an investment. In real estate, the most common way to leverage your investment is with your own money or through a mortgage. Leverage works to your advantage when real estate values rise, but it can also lead to losses if values decline.
What is a 10 cap in real estate?
Cap rates generally have an inverse relationship to the property value. … For example, a 10% cap rate is the same as a 10-multiple. An investor who pays $10 million for a building at a 10% cap rate would expect to generate $1 million of net operating income from that property each year.