What potential result could occur if properties are appraised solely based on their individual values without considering assemblage?

When appraising properties, it's crucial to understand how the concept of assemblage can affect overall value. If properties are evaluated based solely on their individual values without taking into account the potential benefits of assemblage, the total value might indeed be underrepresented.

Assemblage is the process of combining multiple parcels of land, which can lead to increased utility and market value due to the enhanced development potential, economies of scale, or improved access. For instance, two adjacent properties might each be worth $300,000 individually, but when combined into a larger parcel for development, they could be worth $800,000 together due to the added value created by their proximity and potential joint use.

In this scenario, the failure to consider assemblage can lead to an undervaluation of the combined properties compared to their synergistic value, thus underrepresenting the total value in the appraisal. Hence, the potential result of appraising properties solely on their individual values highlights the importance of considering the broader implications of property assemblage in the appraisal process.