What is Real Estate

Real Estate is a bundle of rights. These rights extend to the heavens above and to the center of the earth below. There are other less visible rights, like special treatment under the Federal Income Tax Laws or rights pertaining to the electromagnetic spectrum (i.e. Radio Moscow is passing through your property now. Is this trespassing? Airplanes fly overhead. Is this trespassing on your property rights?).

In the "Social Contract", we, the principles to the contract, convey some of our rights to our, agent, government, to administer these rights for the benefit of "all" and in return we receive benefits, such as preferential tax treatment. Rights not given-up, reside in the land.

Placing a value on this bundle of rights is difficult because the bundle is continually changing shape as a result of governmental action affecting the size of the bundle and fluctuating market conditions affecting the value of individual rights.