Attribute of Commercial Property Value

Attribute of Commercial Property Value

Property Value is created by and varies with changing factors in its relationship.

(1) Utility: Utility could be describe as the usefulness of an item and this usefulness is a significant quality that greatly enhance value. It is the satisfaction the purchaser or buyer of a property derived from it.

(2) Scarcity: There must be an element of scarcity in supply in order for the property to command value regardless of its utility, otherwise, it will be a free goods.

(3) Future Satisfaction: This is the expected flow of return or satisfaction from the acquisition of a property. For example, the expected flow of return in a property may be considered in terms of the rent that will be acquired if the property is let or sell.

(4) Capable Of Ownership: Real property, apart from being bought into use, must also belong to some one either by way of purchase or long lease.