Question

Because of the nonhomogeneity of real estate, which statement is TRUE?

A)No two parcels of land are ever exactly the same.
B)Land cannot be depreciated and is not insurable.
C)Construction of an improvement on a parcel of land can affect the value and use of that particular parcel of land.
D)The return on real estate is considered long term and relatively stable.

Answer 1

In the context of real estate nonhomogeneity, no two parcels of land are identical, which directly affirms that each lot is unique with varying value and use, influenced by improvements and location.

Step-by-step explanation:

Due to the nonhomogeneity of real estate, which refers to the uniqueness of each parcel of land, the statement that is TRUE is A)No two parcels of land are ever exactly the same. Nonhomogeneity means that every parcel differs from others based on location, environment, and improvements.

For instance, improvements on a parcel of land, such as building a house or a commercial establishment, have a significant impact on the value and use of the land.

Each decision about land use, development, or leaving it undeveloped can yield a different rate of return and has varying levels of risk and liquidity.