Florida Real Estate Practice Exam

Which economic characteristic of real property does adding a building to enhance its value represent?

1. Area preference

2. Improvements

3. Permanence

4. Scarcity

The correct answer is: Improvements

Adding a building to enhance the value of a property represents the economic characteristic of improvements. This is because improvements refer to any human-made additions or modifications to the property that increase its value, such as buildings, landscaping, or renovations. Option A, area preference, refers to the desirability of a specific location and how it affects the value of a property. While adding a building may increase the property's desirability, it falls under the category of improvements, not area preference. Option C, permanence, refers to the idea that real estate is a long-term investment and is not easily relocated. While adding a building may make a property more permanent, it is not the specific economic characteristic being represented in this question. Option D, scarcity, refers to the limited supply of land and the impact it has on its value. Adding a building to a property does not necessarily make