Texas · Chapter 02 of 44
Characteristics of Real Property
Economic characteristics (scarcity, modification, permanence, situs) and physical characteristics (immobility, indestructibility, non-homogeneity).
15-minute read · Built for the TREC Sales Agent Exam
scarcitymodificationpermanence of investmentsitusarea preferenceimmobilityindestructibilitynon-homogeneityuniqueness
Economic Characteristics
Real property has four economic characteristics: (1) SCARCITY - land supply is finite, especially desirable land. (2) MODIFICATION/IMPROVEMENT - improvements to land enhance value. (3) PERMANENCE OF INVESTMENT (FIXITY) - real estate investments are typically long-term and immobile. (4) AREA PREFERENCE/SITUS - location preference; some locations are inherently more valuable than others.
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