What principle indicates that combining two adjacent parcels of land can increase their overall value?

Prepare for the Alabama Post-License Salesperson Exam. Utilize flashcards and multiple choice questions with hints and explanations. Ensure your success on the exam day.

The principle that indicates that combining two adjacent parcels of land can increase their overall value is known as plottage. This economic concept arises from the idea that individually, two parcels may have a lower market value than they would have when combined into a single parcel. When landowners combine properties, they may be able to create a more favorable use for the land, such as allowing for more efficient design, increased development potential, or a more valuable overall property due to improved functionality or aesthetics.

Other principles listed, such as regression and progression, relate to the values of properties being affected by surrounding properties. Conformity deals with how properties of similar kinds typically have similar values, as maintaining uniformity in size and usage can help stabilize property values. While these principles are important in understanding real estate value dynamics, they do not specifically address the increase in value resulting from the combination of parcels, which is the essence of the plottage principle.

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