In the real estate market, there are four physical characteristics: Immobility, Externalities, Development, and Supply of Urban Land.

This article will give you a better understanding of the physical characteristics within the context of real estate and why they are important to someone wishing to buy property.

PROPERTY is Immobile IN NATURE

Real property is immobile, preventing it from moving to a better market. Landlords are incapable of moving their physical land to the desired location. Such as to another city for sale. To benefit from using parcels, users must travel from location to location to increase utility. Therefore, location is a large component of a property‘s value.

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External factors influences property value

Changes that take place nearby will directly affect the property value. Property is vulnerable to externalities due to its immobile nature. External factors outside of the property will affect the value of the property.

For example, the noises that neighboring people and construction sites produce.

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PROPERTY continously DevelopS

A location of desired resources will draw attention to the location. Natural locational attractions include water supply, climate, soil fertility, water frontage, and mineral deposits. As the area develops keeps revolving, these developments become components to look for when determining land use and property values. The surrounding development and proximity, such as markets and transportation routes, will also determine the value.

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Supply of Urban Land

Although the amount of land in terms of the surface area is fixed, the supply of urban land is often not limited. Surely, due to the nature of how urban land is supplied. By bidding land away from non-urban uses of land, such as farmland, will increase urban land supply. Urban land value is expected to exceed that of agricultural land value in the long run. Therefore, creating the incentive to convert non-urban land to urban land. The value of the land is directly associated with its use. Zoning regulations regarding multi-story development are modified to intensify the use of cities, instead of occupying more physical space.

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CONCLUSION

The physical characteristics of the property in real estate are important lessons to understand how different parcels are valued, appraised, and how certain factors and improvements affect them.

While there are other attributes, such as the economic characteristics of land, understanding the physical characteristics can help you in your decision-making process when purchasing.

What are your thoughts on the importance of the above characteristics in real estate? Let us know in the comments section below!

To have a better understanding of real property, it is beneficial to start with land and real estate. The land is the basis for economic production, development, and the creation of wealth. From land, we get many benefits such as food, water, and materials to build our homes. Even so, we also get products such as oil, coal, and gas that supply energy.

On the contrary, real estate is the land at, above, and below the earth’s surface. Real estate includes property, land, buildings, air rights above the land, and underground rights below the land.

REAL PROPERTY IDENTIFICATION

The legal descriptions are described in two ways evidently, metes & bounds, and lot & block. A third way is the Public Land Survey System, as used in the United States.

• Metes. The term “metes” refers to a boundary defined by the measurement of each straight run.Metes is indeed specified by a distance between the terminal points and direction. Undoubtedly,a direction may be a simple compass bearing (magnetic), or a more precised accurate survey methods.
• Bounds. The term “bounds” refers to a more general boundary description. For instance, the abuttals and boundaries, a certain watercourse or a stone wall.Few more examples can be an adjoining public roadway, an adjoining property owner, or an existing building.
• The Lot & Block system is perhaps the simplest of the three main survey systems to understand. However,for a legal description in the Lot and Block system a description must identify:
  • the individual lot,
  • the block in which the lot is located, if applicable,
  • a reference to a platted subdivision or a phase thereof,
  • a reference to find the cited plat map
• a description of the map’s place of offiffcial recording

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REAL PROPERTY ECONOMIC ASPECTS

Land use, land valuation, and the determination of the incomes of landowners are among the oldest questions in economic theory. The land is an essential part of agriculture. Therefore it is the most important economic activity in pre-industrial societies. Consequently, with the advent of industrialization, important new uses for land emerge, as sites for factories, warehouses, and urban agglomerations. Also, the real property value taking the form of man-made structures and machinery increases relative to the value of the land alone. Hence the concept of the real property eventually comes to encompass effectively all forms of tangible fixed capital. With the rise of extractive industries, real property comes to encompass natural capital. With the success of tourism and leisure, real property comes to include scenic and other amenity values for this reason.

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The history of real estate RIGHTS

Since the 1960s, as law and economics fields are emerging, economists and legal scholars began to study the property rights enjoyed by tenants under the various estates. The economic benefits and costs of the various estates were too studied. This resulted in a much-improved understanding of the:

Tenants enjoy property rights under the various estates. These include the right to:

1. Decide how to use real property;

2. Exclude others from enjoying the property;

3. Transfer (alienate) some or all of these rights to others on mutually agreeable terms;

4. Nature and consequences of transaction costs when changing and transferring estates.

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FINAL WORDS

Undoubtedly, real estate properties come in different types, each with its pros and cons which you need to consider before determining which type will bring you the most profits and return on investment.

In addition, for more information on anything real estate-related, make sure to keep reading our blog which includes up-to-date information, step-by-step guides, and tips for current and future real estate agents.