In June 2026, broker Maya Chen compares two otherwise similar office condos. Suite 1 has a flexible open layout and dedicated fiber service, while Suite 2 has a chopped-up layout that most tenants would need to rework. Which element of value most directly explains why Suite 1 is likely worth more?
Correct Answer
A) Functional usefulness to likely users
Utility is the property's usefulness in satisfying market needs. Because Suite 1 can serve more tenants with less modification, it has greater utility, which supports higher value.
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In real estate valuation, which element of value refers to the presence of willing buyers with purchasing power?
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In August 2026, several buyers compete for the last buildable waterfront lot in a small subdivision where no similar sites remain. Which element of value most directly supports the lot's premium price?