03 The Real Estate Market - Characteristics of Real Estate Flashcards

03 The Real Estate Market - Characteristics of Real Estate Flashcards historic downtown rehabilitation & desire to shorten commutes inspired move back into central, urbanized areas, increasing the situs in cities compared to that of the suburbs.residential area situs factorsweather, views, and air quality affect situs, along with man-made factors like job opportunities, shopping, and schools industrial zone situs factorsavailability of a labor market, ample water and electricity supplies, and access to railways

• physical characteristics of landimmobility, indestructibility, nonhomogeneity

situs canchange with time immobility of property (fixity)land cannot be moved from one location to another where it would be more valuable scarcitya shortage of land in a given geographical area where there is a great demand for land.- man made immobilityBecause land is immobile, a person must go to land - land cannot be brought to a person improvements canraise and lower land values improvements to land follow this general rule With very few exceptions, the cost of moving a house, as well as preparing a foundation at a new site, exceeds the value of the home once the move is done when land is sold, seller gives buyer a document a deed that transfers the land to the buyer and the right to use it modifications don't alwaysimprove real property situs (location preference)a location from an economic rather than a geographic standpoint nonhomogeneity (law)nonfungible commodity; meaning, land is unsubstitutable indestructibilityland is indestructible/durable lands ability to appreciate in valuehas to do with economic durability, not durability in sense of it being physically indestructable investment in real estate is afixed, "sunk" cost modification (improvements)man-made developments made to real property-can greatly influence land use and value sufficiency or over-sufficiencylack of scarcity

• economic characteristics of landscarcity, modification, fixity, situs

nonhomogeneity (heterogeneity)no two parcels of land are exactly alike fixity (investment permanence)land, buildings, and other improvements require long periods of time to pay for themselves.homogenous (fungible goods)commodities that can be freely substituted in carrying out a contract street corners, corner offices, apartments w/ commanding views are more highly valued than identically-sized lots in less-preferred locations because of situs