Economic Characteristics of Land Explained

Which of the following is not considered one of the five economic characteristics of land?

a) The more demand for a particular property, the more valuable the property.

b) Each parcel of land has its own nonhomogeneous characteristics. No two properties are the same.

c) When loans are available and rates are low, real estate is easily transferable from seller to buyer.

d) Location, or situs, is the most important economic characteristic of all.

Final answer:

Among the provided options, 'When loans are available and rates are low, real estate is easily transferable from seller to buyer' is not considered one of the five economic characteristics of land. These characteristics include scarcity, improvements, permanence of investment, area preference (situs), and non-homogeneity.

Explanation:

The correct answer to the question is option c) When loans are available and rates are low, real estate is easily transferable from seller to buyer. This statement is not considered one of the five economic characteristics of land.

The five economic characteristics of land are:

• Scarcity: Land is limited and hence it is scarce. The supply of land is finite, which contributes to its value.
• Improvements: Enhancements to the land or structures built upon it can alter the value of the land.
• Permanence of investment: Once land is developed, the improvements (like buildings) tend to be permanent.
• Area preference (Situs): This refers to the location of the land and directly impacts its value.
• Non-homogeneity: No two parcels of land are identical. Every piece of land is unique in terms of location, size, shape etc.

Option c) largely pertains to the financial infrastructure surrounding real estate transactions, rather than inherent economic characteristics of the land itself.