Valuing durable assets is essential for informed decisions on acquisitions, dispositions, budgeting, and borrowing, yet remains challenging due to illiquidity, heterogeneity, and subjective assessments. We propose a valuation model based on the no-arbitrage option pricing theory that outperforms traditional hedonic methods both in- and out-of-sample, remains robust under changing market conditions, and can price real options on durable assets. Our model has broad utility - detecting arbitrage, informing refinancing de-cisions, valuing collateral, and assessing whether securitized asset prices reflect underlying values. This forward-looking, market-sensitive approach addresses key limitations of conventional methods and improves decision-making across investment, lending, and financial reporting contexts.