Explanations

For an appraiser, the definition of value is multifaceted, encompassing all the options provided.

• A. A relationship between desirous persons and things desired: Value is often derived from consumer demand and the available supply. Demand itself is created by desire, which must be backed by purchasing power. The concept of “utility,” one of the four elements of value, refers to a property’s capability to provide gratification and incite the wish to possess it. This directly relates to the relationship between what people desire and the things that can satisfy those desires.
• B. The ability of one commodity to command other commodities in exchange: This describes the fundamental concept of “value in exchange,” also known as market value. Historically, value in exchange was evident in barter systems where goods and services were directly exchanged based on perceived equal value. Commodity money itself derives value from its intrinsic worth and its use as a medium of exchange.
• C. The present worth of all the rights to future benefits arising from the ownership of property: This is a core definition of value in appraisal. The “Principle of Anticipation” states that value is created by the expectation of future benefits. An appraiser will often assign value based on the anticipated income or usage that will accrue to the owner in the future, especially for income-producing properties.

Therefore, all these descriptions contribute to a comprehensive understanding of value from an appraiser’s perspective.

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