The utility of real estate is?

Answer 1

Utility can be classsified as "what its use is" or what it is used for or functions as. For instance a property can be "residential or commerical". Owner occupied or non-owner occupied.. etc..... The highest and best use of the property usually brings a higher value on an appraisal verses a property being used for a lesser "utility"....Like a commercial building being used for a primary residence would not be as good as a commerical building being used as a beauty salon or other type of business. So the "utility" of a "dairy farm" ....would be dairy.. if a property is used for other than what it was built for it can have "functional obsolence" which could have an impact on its value.