Real estate assets and markets are unique when compared to other assets or markets. Discuss the primary ways that real estate markets are different from the markets for other asset that trade in well-developed public markets.

a)Estates. An estate refers to the legal ownership of a property. You can keep it for a set period or forever. There are four kinds of estates available: Fee Simple Absolute/Fee Simple Determinable Fee Tail/Fee Simple Determinable Life Estate and Leasehold Estate.

b) The Bid-Rent Curve. This economic concept states that people will pay more for properties located near the best land use, such as in downtowns or at other facilities like beaches. These properties become less desirable as people move further away from them. This is due to decreasing demand and increasing distance. This curve helps to describe how buyers “bid” on properties with higher or lower rent depending on where it is located relative to certain desired characteristics.

c. Fee Simple: This is an absolute, unrestricted ownership form that gives the holder full control over the property and the ability to dispose of it as they wish. Modern society’s most prevalent type of estate is typically the highest. This includes full ownership by government, with no restrictions on any property changes.
d) Location Quotient: The location quotient (LQ), also referred to as localized concentration ratio, is a statistical measure used by economists and geographers that compares an area’s industry composition against either a national average, state average, region average or metropolitan area average employment distribution in order compare regions determine differences similarities . LQ calculated dividing proportion particular economic activity specific locality nation – wide figure example say Raleigh Durham showing 10 % construction industry workforce mean across US 8 % then LQ 1 25 / 0 08 = 1 56 indicating 56 % greater concentration building trades within Raleigh Durham compared rest country
The Uniform Standards Professional Appraisal Procedure consists of six stages. Step 1 involves the identification assignment and clarification scope analysis. Step 2 includes the determination of purpose. Step 3 involves the application or approximation of value to fulfill those purposes. Step 4 is about evaluating four well-known appraisal methods: Comparatives Cost Income, Sales proceeds. Step 5 gathers credible support data that connects dots and creates appraisal reports. Stage 6 involves the distribution of information relevant parties.