What is the term for the ability of a property to fulfill its intended use?

Utility refers to the ability of a property to fulfill its intended use, essentially capturing how well a property meets the needs and wants of its users. This concept underscores the significance of a property being functional and desirable for its specific purpose. For instance, a commercial building's design, location, and features should all contribute to its usefulness for businesses.

In the context of property appraisal, utility plays a pivotal role in determining a property's market value. Properties that demonstrate high utility—meaning they serve their intended purpose effectively—are often more valuable because they attract more interest from buyers or renters. An understanding of utility is crucial for appraisers when evaluating properties, as it connects directly to the property's desirability and potential market performance.

The other terms do not specifically capture this aspect: desire relates more to the emotional appeal of a property rather than its functional capacity; scarcity refers to the limited supply of a resource, impacting value but not directly the property's ability to fulfill its intended use; and value is a broader concept that encompasses both utility and demand but doesn't pinpoint the specific functionality aspect.