the property may not be the owner and example of this is a

Chapter 4 real estate Flashcards Person in possessionOne more feature real estate is the person in possession of the property may not be the owner and example of this is a renter tenant who may be using the property but does not own it Characteristics that impact the real estate marketThe real estate market is impacted not only by the economic and physical characteristics of land but by many other factors such as supply and demand demographics employment government controls and interest rates Non-fungible CommodityLand is considered non fungible Community due to its uniqueness no two tracts of land are exactly alike because no two lots can occupy exactly the same space Physical DurabilityRefers to the permanence of land while its economic value and surface appearance may change land itself is indestructible for all practical purposes ImmobilityCharacteristics of land stating that land has a particular geographical location that will remain constant bearing a erosion or slow geological changes Economic characteristicsAre human made Personal propertyItems that can easily be removed from the land Economic Characteristics of Real EstateEconomics scarcity alteration fixity and situs Alterations continueThe alteration does not have to be on a particular piece of property to change could be nearby and still affect the desirability of the land for example being down wind 4 map looting Factory may cause property lose value also power lines Lots of lotsEven two lots measuring the same dimensions may not conform because for example one may have a tree on it and the other may not even if they look the same the legal description is signed to the developer is different for each tract of land for example one maybe lot too and the other maybe lot 3 Governing bodiesTexas state legislator and the Texas Real Estate Commission or Trek applicationFor which it is being used a corner lot with a strip shopping center on it is nothing like a perk provided by the city still they're both called real estate + both are good places to take your family and friends for a fun day Economic scarcity 3The scarcity of land that is in high demand makes the selling prices rise however the inverse is also true when the town's primary job provider goes away many people move away due to lack of job opportunities businesses close

home sit empty many properties are up for sale in the scarcity is gone the lack of the demand for this area means prices will fall physical characteristicsOccur naturally Fixity and situsThe preference of land is known as fixities land cannot be moved this is a geographical characteristic however

location can also be an economic characteristics the importance of location in real estate industry is now a cultural cliche location location location

Situs 3Is an economic preference for a certain location or characteristic that affects land in the value the preference in the social convention that creates part of the value of particular track so we say that's it is as an economic rather than a physical characteristic it may change from time to time to change is usually caused by differentiating attitudes of the generations many believe that the younger generation is more interested in living close to amenities such as coffee shops and restaurants this is a shift from those who prefer to live in the suburbs where cars and lawn mowers are needed Slope and transportationHow easy would it be for a customer and employee to get to location how hard would it be to get raw materials needed for the product created on the property there just a couple of the questions that may come up when considering the unique nature of each individual property transfer of ownershipAn additional feature real estate is at the ownership can be transferred without transferring their property to another location when personal property is purchased with the new owner usually takes the item with them and real estate land can be bought but not removed and yet the possession of the property has changed hands Economic ScarcityIs created solely by demand for land in a particular areas land is most valuable when it is in short supply and in high demand some land is more desirable than other land AlterationThe economic value of land depends on how heavily it just developed altered in Modified by buildings and other developments an example would be if a sewage treatment plant is built next to Neighborhood the owners are more likely to see their homes values decrease alteration is one reason real estate prices May folk fluctuate situs2Desirability of a location is an economic preference for a particular location and not a geographical one Similar but not equalTwo tracts of land I can have similar properties or similar values regardless of the fact that they are not exactly the same for example a house located in 40 acres on a lake can be similar price to another house on the same like or even a 500 acre ranch located in New Mexico is precisely due to the fact that the comparison between properties can be made that market comparison in real estate appraising or common practices Supply and price move in opposite directions Demond and price move in the same direction as a man increases the price increases as demand decreases the price decreases