Final answer:
The principle of value when two adjacent properties are combined to create a single higher-value property is called assemblage, differing from accretion or subdivision about land.
Step-by-step explanation:
When a property owner combines two adjacent properties to create a single property with a higher value than the sum of the values of the two separate properties, the applicable principle of value is called assemblage.
The idea behind assemblage is that the combined property may have a new potential for use or development that the separate parcels did not have on their own, creating a synergy that increases the value of the united parcel beyond the mere addition of their separate values.
Assemblage is distinct from accretion, which refers to the gradual increase of land area through natural forces, and subdivision, which is the splitting of a larger property into smaller parcels.
Understanding the principles of property value is essential in fields such as real estate, land development, and urban planning. Decision-making regarding property often takes into account factors like capital flight, property taxes, and negotiations to purchase neighbouring properties, as these can influence the value and desirability of a property.
The value judgment that comes from assemblage can significantly affect the economic outcome for both the individual property owners and the community at large.