Start with the land. Add the house and its permanent improvements. Now add the ownership rights associated with that real estate. Together, we are describing real property. Look inside the kitchen. Built-in cabinets ordinarily form part of the real estate as fixtures. The movable cart ordinarily does not. The key distinction is not whether an item is valuable. It is how the item relates to the land and improvements, along with the relevant facts and agreement. Ownership rights can also be divided or limited. Quick check: does every object sitting inside a house automatically become real property? No. A movable item can remain personal property even when it is inside the home.