Chapter 1
Kentucky Real Estate Law & Regulations
Course: Kentucky Real Estate Exams Prep
Subject: Kentucky State Sales Associate Exam Prep
Chapter: Valuation Amp Listing Property Of Kentucky National Sales Associate Exam Prep
Four Essential Factors of Value (DUST):
- Demand: More than just desire; it requires a market of buyers with the purchasing power (ability to get financing) to act on that desire.
- Utility: The property's ability to provide usefulness and satisfaction. A 4-bedroom home has high utility for a family; a vacant lot's utility depends on its zoning.
- Scarcity: The relative shortage of similar properties in the market. A unique, historic home on a large lot in a mature neighborhood is scarce. A standard condo unit in a large new development is less scarce.
- Transferability: How easily ownership rights can be conveyed. A property with a clouded title (e.g., an old heir's claim) or severe private restrictions has low transferability, which depresses its value.