In order for property to have value, it must possess which of the following characteristics?

Value in real estate is determined by several key characteristics, and the combination of utility, scarcity, and desirability is essential for property to hold value.

Utility refers to the usefulness of a property. For example, a home that provides essential amenities to a family fulfills a need, enhancing its value. If a property has no practical use or purpose, its value is significantly diminished.

Scarcity indicates the limited availability of a type of property or location. When demand exceeds supply, the value increases because people are competing for that limited resource. For instance, land in a desirable area with few available lots tends to be more valuable.

Desirability reflects the appeal of a property based on factors such as location, amenities, and overall market demand. A highly desirable property will attract more buyers or renters, driving up its value.

Together, these three characteristics create a robust framework for valuing property, as they encompass both the subjective and objective elements that influence market behavior.