What does the acronym "DUST" refer to in the context of value characteristics?

The acronym "DUST" stands for Desire, Utility, Scarcity, and Transferability, which are key characteristics that affect the value of a property.

Desire refers to the demand for a property based on individual wants and needs. Utility is about the usefulness of the property; it needs to serve a purpose or provide some benefit to be valued. Scarcity involves the limited availability of a property or type of property in a given market, which can drive up its value. Transferability refers to the ease with which ownership of the property can be transferred from one party to another, which is crucial for establishing a property’s market value.

Understanding "DUST" is essential for appraisers as it encapsulates the fundamental factors that influence how much a property is worth in the marketplace. These elements interact to create a framework that helps appraisers determine property value.