What does Appraised Value represent?

The concept of Appraised Value is fundamentally about the estimation of a property's value based on various factors included in the appraisal process. This value is determined by a professional appraiser, who utilizes methods such as comparable sales, cost approach, and income approach to assess the property's worth in a specific market context.

Focusing on the choice that indicates Appraised Value represents an estimate of value before any fractional assessment, this is correct because appraisals are typically conducted at full market value without taking into account reductions that may occur due to taxation or other exemptions. This assessment provides a baseline for understanding the property's potential market value in its entirety.

In contrast, the other options do not accurately reflect the concept of Appraised Value. The mention of taxes and exemptions relates to the assessed value that may be used for tax purposes rather than the appraised value itself. The final sale price of a property represents what a buyer and seller agree upon, which can differ from the appraised value based on negotiation, market conditions, and buyer perception. Finally, the market price adjusted for economic factors moves into the realm of actual transactions and specific economic conditions affecting a property, without providing a pure estimate of the underlying value based solely on appraisal principles.