The DUST Magnet

Collecting Fragments into a Value Conclusion.

The instructor of an appraisal class I took named four variables to describe value:

• Demand --We all understand this market basic. Buyers, or lack of them, influence value. Good economic conditions encourage buyers to purchase real estate; conversely, the number of interested buyers falls when the economy tightens.
• Utility -- Housing, work space, recreational areas, storage. Real estate fills all these needs, and many more. Designs, layouts and finishes that keep properties occupied, enjoyed and well-used enhance value.
• Scarcity -- This is a descriptive way to think about "Supply", the other arm of an economist's graph (perpendicular to "Demand"). If a property is not attracting buyers, supply rises. It also brings in the idea that real estate with the qualities appealing to buyers will sell, while properties that "miss the mark" do not get offers. Comparing property features could provide clues to what piques buyers' interest in the current market .
• Transferability -- We don't think about this factor until a problem arises, like a property restriction that reduces its marketability. One thing we take for granted is the availability of loans to qualified buyers. When the mortgage market nearly collapsed in 2008, government agencies were quick to step in and assure that buyers could get funds to close loans. Think what might have happened to value if we had lost that confidence.

Just remember. Your property collects dust, and it takes work to clean that up. It also reflects DUST, and it takes work to maximize those factors.