What does the term "valuation" refer to in property appraisal?

The term "valuation" in property appraisal specifically refers to the process of determining the monetary worth of a property. This process involves assessing various factors, including location, condition, market trends, and comparable sales, to arrive at an accurate estimate of a property’s value. Valuation is fundamental in the appraisal field, as it provides a quantitative basis for decision-making in various real estate transactions, including buying, selling, financing, and taxation.

The other options do not accurately encapsulate the definition of valuation. While future projected worth may be a consideration in some appraisal methods, it does not define the term itself. Legal requirements for property ownership pertain to regulations and laws rather than the valuation process. Lastly, calculated depreciation is a component that may affect a property's value, but it is not synonymous with the broader concept of valuation. Hence, the correct answer highlights the core focus of valuation as a critical aspect of property appraisal.