Which of the following is a physical characteristic of real property?
Correct Answer
C) The parcel cannot be relocated to another geographic site
The parcel’s fixed geographic location describes immobility, a physical characteristic of land. The other choices describe market preferences, demand or relative supply. Location can influence value, but its physical fixity is distinct from the market’s current preference for that location.
Why This Is the Correct Answer
Option C is correct because real estate is immobile, meaning it occupies a fixed point in geographic space. The fact that the parcel cannot be relocated to another site describes this physical characteristic of land.
Why the Other Options Are Wrong
Option A: Buyer preference for a particular school attendance area
Option A is wrong because buyer preference for a particular school attendance area is a market preference. It reflects what buyers want, not a physical trait of the land.
Option B: Scarcity of sites relative to demand
Option B is wrong because scarcity of sites relative to demand is an economic characteristic. It compares supply with demand rather than describing the parcel itself.
Option D: Demand for additional building sites
Option D is wrong because demand for additional building sites is a market condition. It describes buyer and builder activity, not a physical feature of real property.
Land cannot move
You can move a house in rare cases, but you cannot pick up the land and take it elsewhere: that fixed position is immobility.
How to use: Use this to spot immobility among physical versus economic characteristics.
Exam Tip
Preferences, demand and scarcity are market factors; immobility, uniqueness and indestructibility are physical characteristics of land.
Common Mistakes to Avoid
- -Treating location preference as a physical characteristic
- -Calling scarcity a physical feature of land
- -Assuming immobility means location has no effect on value
Concept Deep Dive
Analysis
This question tests the difference between physical characteristics of real property and market or economic factors. A parcel's inability to be relocated is immobility, a physical characteristic, while preferences, demand and scarcity are market conditions.
Background Knowledge
Physical characteristics of land commonly include immobility, indestructibility and uniqueness. Economic characteristics include scarcity, situs or location preference, improvements and permanence of investment. Location affects value through market preferences, but the fixed position of the land is itself a physical fact.
Real-World Application
Two identical houses sit in different school attendance areas, and buyers pay more for one area. The appraiser notes that the land's fixed location is physical, while the price difference reflects market preference for that location.
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