Which of the following is a characteristic that distinguishes real estate?

The correct answer focuses on the non-homogeneity of products as a key characteristic that distinguishes real estate. Real estate is unique in that no two properties are exactly alike, even if they are in the same neighborhood or of a similar type. Each property has its own specific features, location, and market condition which influence its value. This uniqueness, or non-homogeneity, is critical to understanding real estate markets because it affects pricing, marketing strategies, and investment potential.

While fractional ownership can apply to various investment vehicles, and standardization of properties may be seen in sectors like commercial real estate, these concepts do not capture the inherent differences between individual residences or parcels of land. Instant market adjustments might occur in some markets, but they are not a distinguishing feature of real estate as a whole, which often experiences slower adjustments due to factors like zoning regulations, market demand, and external economic conditions.