In the context of appraisals, the term "indicated value" refers to:

The term "indicated value" in the context of appraisals specifically refers to the value determined by applying one of the appraisal approaches to estimate property value. In this case, the cost approach is one of the primary methods used in appraisals, which calculates the indicated value by assessing the cost to replace or reproduce the property, subtracting any depreciation, and then adding the value of the land. This method is particularly useful for properties that are unique or not frequently sold, where comparable sales data may be limited.

The indicated value represents the appraiser's best estimate based on the inputs and calculations from the cost approach, making it a crucial figure in the appraisal process. The focus on the value derived from a systematic analysis of costs distinguishes it from other forms of valuation like projected sale prices, bid amounts, or contractual agreements between buyers and sellers. Each of these other options takes into account different factors that may not reflect an objective assessment of value like the indicated value does through the cost approach.