Categories of Real Estate Characteristics

Question 1

Two primary categories of real estate characteristics

Answer 1

Economic
–and–
Physical

Question 2

Scarcity
Improvements
Permanence of Investment
Location or area of preference

Answer 2

Economic

Question 3

Immobility
Indestructibility
Uniqueness

Answer 3

Physical

Question 4

Finite amount of land

Answer 4

Scarcity

Question 5

Land’s value affected by changes that are made to it

Answer 5

Improvements

Question 6

Improvements such as sewer, roads and utilities that are long term, stable investments with stable returns

Answer 6

Permanence of Investment

Question 7

A property’s value is impacted by where its situated and how interested people are in buying or living in the area

Answer 7

Location or area preference

Question 8

Geographic location of a piece of land is fixed and can never be changed

Answer 8

Immobility

Question 9

While improvements may deteriorate over time - the land itself can not be destroyed.

Answer 9

Indestructibility

Question 10

Land is not interchangeable and is not exactly like another

Answer 10

Uniqueness