Ow can we use real options in the pricing of real estate?

A Journal source that must be used:
Sheridan Titman (1985); Urban Land Prices under uncertainty -The American Economic Review;75(No.3);505-514. You can find this article on JSTOR.
Essay question:
Question. How can we use real options in the pricing of real estate?

Paper fomat: Ms word document:11 pt font size, Times New Roman, double spaced.

Please also use equations in essay to show practically how we use real options in the pricing of real estate.

Minimum Sources:( there is no maximum)
Types of Sources to be used:
5 Journal articles (including the one mentioned above) and
1 Reference Book

Note: Specific instructions have been given to us telling us that only that essay will get a good mark in which the writer uses his OWN THOUGHTS. The professor wants to see that the writer has thought about the material used in the essay.

Guidelines ( by professor):

1) Remember that the minimum essay length is 2000 words. There is no upper limit. The letter size should be 11pt.
2) The essay structure for this course should be 1)Introduction2) Main Body of the essay and 3) Conclusion.
3) In the 1) Introduction -you typically introduce the topic to the reader. 2 ) Main bodyIn the main body you discuss the topic using reference material and you include YOUR OWN THOUGHTS. You use the Conclusionsection to summarize the ideas contained in the essay. A note on using
your own thoughts. What I want to see is that you have thought about the meterial you are using in your essay.
4) Good essays will be those which are 1) containting your own thoughts, 2) are well writtern and properly refrenced, 3) contain references to journal article and books( in the text) of the essay.
5) Bad essays will be those which 1) are containing none of your own thoughts, 2) are badly written( no spell check, bad grammer and improper referencing)
6) Zero-grade essays: all essays which are plagiarised receive a mark of zero and all essay turned in after due date.