Ch 2: Characteristics of Real Estate Flashcards

Ch 2: Characteristics of Real Estate Flashcards

The 4 ECONOMIC Characteristics(EC) of Real Estate

(SIPS)

1.) Scarcity2.) Improvements3.) Permanence of Investment4.)SITUS/Location Scarcity (EC #1)LAND is finite; Uniqueness(PC #3)- No 2 properties are the same-every property has specific characteristics that make them different from one another What are the 2 categories that define the characteristics of Real Estate?

1.) Economic2.) Physical Bundle of Rights-PCEED-(P)ossession-(C)ontrol over the property-(E)njoyment-(E)xclussion-(D)isposition Indestructibility (PC#2)LAND can't be destroyed;permanence of land makes it valuable Permanence of Investment (EC #3)The idea that the return on a large fixed investment is usually long term and stable Immobility (PC #1)geographic location of land can never be changed; It is FIXED or IMMOBILE ownership rights of Real Property are called? Bundle of Rights The 3 Physical Characteristics (PC) of Real Estate-IIU(I)mmobility, (I)ndestructibility, (U)niquesness Location (EC #4)-SITUS"SITUS"; people's preferences for given areas.unique quality of preferences = different values for similar units.-Location is the most important economic characteristic of land.Improvements (EC #2)-any artificial addition to land; affects the land's value and use, as well as that of neighboring tracts and whole communities.