4 ms·
> The value of the house is in the legal statement of ownership. What is owned is important of course, but the legal statement of ownership itself is traded for
by giaour 4y ago
> The value of the house is in the legal statement of ownership. What is owned is important of course, but the legal statement of ownership itself is traded for these values.
And yet, I own many worthless things that also exhibit that property (like a picture my niece drew of me and my cat). There is a totemic quality to possessing something, but that is almost always personal and independent of the thing's market value. Outside of "collectible" properties (structures with historical significance like castles or Frank Lloyd Wright houses), houses have a market value related to the imputed rent they produce and potential productivity of the land.
- mistrial9 4y agoyes agree -- the insight is into the additional restrictions on access. Market values react to scarcity in most cases. The legal titles, the ability to obtain and dispense of loans, the ability to exchange titles and resolve blocks in titles, contribute to the valuation. In the case of a child's drawing, very few impediments exist to exchange or declare title to that one drawing, and there is little scarcity since most children draw a lot of pictures.