How is value defined in appraisal terms?

In appraisal terms, value is defined as an estimate of worth that is influenced by several key factors, including utility, scarcity, demand, and transferability. Utility refers to how useful a property is to a potential buyer; scarcity pertains to the availability of similar properties in the market; demand relates to the desire of buyers for the property; and transferability concerns the ease with which the property can be sold or transferred.

These factors together contribute to the overall assessment of a property's value because they reflect the conditions of the real estate market and the specific attributes of the property in question. By evaluating these elements, appraisers can arrive at a fair estimate of what the property is worth, which is essential for sales, financing, taxation, and investment analysis.

The other definitions provided in the options focus on specific aspects of value or calculations associated with property but do not encompass the comprehensive definition that includes the interplay of utility, scarcity, demand, and transferability. These elements are fundamental to understanding market dynamics and providing a thorough appraisal.