Characteristics of Value (DUST)

For any product, including real estate, to have value in the economic sense, it must possess four specific characteristics, easily remembered by the acronym DUST:1. Demand There must be a desire for the item, supported by the financial ability to purchase it (effective demand). If people want it but can't afford it, it has no economic value.2. Utility The item must be useful; it must satisfy a human need or desire. In real estate, this means the property can be lived in, rented out, or used for business.3. Scarcity Supply must be limited relative to demand. If air were sold, it would have no value because it is abundant; however, beachfront land is valuable because there is a finite supply of it.4. Transferability The ownership rights must be transferable from one person to another. If you cannot legally sell or give the item to someone else (for example, a government building that cannot be sold), it has no market value.