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	title of this thread your message They are, if I may paraphrase: 1. Is furniture undervalued vs. real estate? 2. Is the real estate designed by great architects undervalued vs. the art of a Picasso? Let me try Number 2 first, because it calls attention to the distinction between the market value of a unique, portable and decorative artifact and the market value of a fixed, uniquely located and designed real estate property with a combination of real estate utility (rentable sf) and a prized architectural dimension. First, let's define real estate: it is property rights that allow the use and enjoyment of space within a legally defined piece of land, sea, or air. We buy, sell, and rent the property rights. We don't actually transfer the site. It is where it is and, while one can pick up a building and move it occassionally, or quarry and sell the earth and stone, or extract minerals from it, the legally defined size is stuck abstractly, where it is, and can only be legally redefined by subdivision, or combination, and even then it does not really change location--just form. So: Frank Lloyd Wright builds a house; i.e., on a parcel of real estate he puts up a space for a person/family to live in. It has the utility of living space, at a given location, even if he forgets all his virtuousity and unexpectedly builds a tract ranch house. By this, I mean a certain kind of person with a certain kind of job and income and commute can bid for that location in the land economy. Think of the land economy as a topographic map where the topo lines are value/sf above zero value, rather than elevation above sea level. Expensive land and neighborhoods have a high elevation of price. Poor one have low elevations and so on in between. There are islands of price. Valleys of price. Mountain ranges of price. Plateaus of price. The house exists in this dimension of price. Now, let's add that Frank does his best and makes a masterpiece and adheres his red tile. He dies. The house becomes legend as does he. Everyone who is an architecture lover and who is willing to live at that location, part or full time, bids on it. There aren't very many of his masterpieces and they don't come up often. Bidding is very competitive. It brings a big price to someone with a lot of cash, a love of fine architecture, some need to live there and a willingness to maintain the house and grounds and pay the taxes and insurance and so on. associated web images (optional) associated web link (optional) your email your password create a forums account \| you forgot your password?