It should be obvious, but many people don't think about the fact that real estate is defined by geology.  This is because geology defines the value of location. The value of a location equals price.  Thus an educated real estate owner and buyer should educate himself about the geologic features of his neighborhood to better understand where to find the best opportunities.

Throughout the country, from the San Andreas Fault, to the Great Lakes to the Missippi, there are immense geologic features that affect your homes value. Let's look at one example that affects millions of Americans on the East Coast of the United States.

The Fall Line

Washington D.C., like most cities on the East Coast, is just downriver from the Fall Line. The Fall Line is that point at which sea-going vessels can not traverse further inland. This is most usually marked by a "falls" or cataract where the water from the Appalachian Plateau (or inland continental highlands) drops down to the sandy soils of the Coastal Plain.

Nearly every major city on the eastern seaboard is found at the Fall Line, from Atlanta to Baltimore, to New York to Boston. For most of its course Interstate 95 is never far from the Fall Line and if your home is anywhere near this feature, you'll want to learn more.

In Washington, this cataract is at Great Falls on the Potomac between Virginia and Maryland. Above Great Falls, the land is rocky and the geology is like that found in the uplands. Below Great Falls, the soils are sandy and the geology is like that found around the Chesapeake Bay. This is most obvious at the falls itself and immediately downriver at Mather Gorge. The bluffs of Mather Gorge parallel the Potomac on either side of the river. And this is where geology gets really interesting ...

Find the Bluffs to Find the Most Valued Real Estate

These ridges follow the river banks from Great Falls all the way to the Chesapeake Bay.  In some places like Spout Run Parkway or the promintory of Georgetown, the ridge is obvious.  In other places the ridge recedes away from the Potomac creating a broad and flat flood plane. In these places the bluffs are worn by erosion and less obvious to the casual observer. 

But interestingly the most valuable and historically treasured real estate in the region is found on these bluffs. For example, both Mclean in Virginia and Georgetown in DC are on this prominence. The most valued land in Rosslyn is on the ridge.

The U.S. Capitol itself is on the ridge. Capitol Hill is the ridge, though its edges are softened by erosion and hidden under soil and the steps of the Capitol Building. At the foot of the Capitol between the Washington Monument and the Capitol are the Reflecting Pools, pleasant shallow rectangular duck ponds.  But before the rise of the city, this was a marsh and flood plain for the Potomac.

Across the river, the ridge continues to make its way downstream. Here, the famed Iwo Jima USMC Memorial is on the ridge. The Arlington House, Robert E. Lee's home at Arlington National Cemetery, is on the ridge. The brand new Air Force Memorial is on the ridge.

Arlington's prestigious “Ridge Road” peers down to Crystal City in the flats below.

Old Town Alexandria is at the foot of the bluff, occupying a colonial harboring point.  Shooter's Hill overlooks Old Town and is the now the home to the George Washington Masonic Memorial. Shooter's Hill (pictured below) is the same ridge that started in Great Falls. 

Back in Maryland, the brand new National Harbor is at the foot of the bluff. The bluff, previously obscured by trees is now obvious because the trees have been cut away for construction. Condos and residences on the water are now selling at the harbor, but I forecast that the homes on the bluff will eventually garner high prices, despite the fact that they aren't directly on the water.

Outside Old Town, the condos of Montebello are on Mount Eagle, the site of an old US Civil War era fort. Just like the old fort, the condominiums at Montebello have commanding views of the Potomac and points inland as well. Montebello is a case in point where the geology defines the value. 

Generally, one assumes that waterfront property is the most valuable property.  The Potomac is one of the most famous waterways in the United States and at the Woodrow Wilson Bridge the views are quite scenic.  That said, at the water's edge you'll find Hunting Point on the Potomac, an affordably priced rental community.  The ridge at Montebello is about a mile from the water's edge, but the real estate is at least as valuable (some, including me, would say much more valuable) than the land at the water's edge.

Follow this ridge far enough downstream and one will happen upon the prestigious and luxurious neighorhood of Belle Haven. Fort Williard, a civil war era fort, is found at the heart of Belle Haven.  Fort Willard is hear because the knob of Belle Haven, now hidden behing tree cover, commanded impressive views when stripped bare by the Union soldiers. On the other side of the river in Maryland Fort Washington is sited on the ridge overlooking the river.

Mount Vernon is the name given by George Washington to his manor on the Potomac. George Washington didn't build his home at Mount Vernon on the water. Instead, like Robert E. Lee at Arlington and Montebello at Mount Eagle, he built his mansion on the bluff overlooking the river.

Summary

Learn and study your local geology to find similar patterns. No doubt the bluffs overlooking the Missippi are more valued than then sandy hooks prone to flooding.  If you're out west, a mountain's rain shadow can impact the value of your property.  In the desert the availability of water has traditionally been the defining feature in land valuation.