Real Estate Appraisal Practice Exam

Which of the following factors is NOT typically part of the DUST attributes in real estate?

1. Utility

2. Transferability

3. Liability

4. Scarcity

The correct answer is: Liability

The DUST attributes in real estate refer to four key characteristics important for determining the value of property: Demand, Utility, Scarcity, and Transferability. Each of these components plays a crucial role in assessing the market value and desirability of real estate. Utility refers to the property’s ability to fulfill a buyer's needs, making it functional for its intended purpose. Transferability indicates how easily a property can change ownership, which impacts its liquidity in the market. Scarcity acknowledges that the limited availability of a particular property type increases its value, as the demand for such properties can exceed supply. Liability, on the other hand, is not a DUST attribute. While liability can be important in real estate in the context of legal obligations or risks associated with ownership, it does not directly contribute to the fundamental attributes that determine value. The focus of DUST is primarily on factors that enhance value rather than those that might pose risk or obligation. Thus, liability is appropriately identified as the factor that falls outside the DUST framework.