Jared's purchase of two adjacent parcels of land for $20,000 each that appraise for $50,000 is an example of what?

In this scenario, Jared's purchase of two adjacent parcels of land that he acquired for $20,000 each, which then appraise for $50,000, exemplifies the concept of plottage. Plottage refers to the increased value that can result from combining two or more parcels of land into a single larger parcel. By combining these two adjacent parcels, Jared is likely to see an increase in their overall value beyond the sum of their individual appraised values due to potential benefits such as improved usability, development possibilities, or zoning advantages.

The notion of plottage highlights how the combined land can yield greater economic benefits than the properties would have if they remained separate. This is particularly relevant in real estate, where the value can be significantly higher for larger, contiguous areas compared to smaller, individual lots. This understanding of how land can be utilized or developed in a more profitable way is crucial for real estate professionals.