What is NOT a characteristic of plottage value?

Plottage value is the concept that refers to the added value created when two or more adjacent parcels of land are combined into a single parcel, resulting in a more valuable property than the individual parcels would have yielded on their own.

The statement that it applies only to residential properties is inaccurate because plottage value can be relevant in various types of real estate development, including commercial and industrial properties, not just residential ones. This increased value can arise because the larger parcel may have better zoning opportunities, improved utility access, or enhanced development potential.

In contrast, the other characteristics of plottage value highlight important aspects of this concept: it does refer to the increase in value from combining parcels, and while it ideally is legal and possible, there can be instances where combining parcels does not yield the anticipated value increase, thus highlighting the potential for a decrease in value if the parcels are not combined successfully.