What term is used to describe the increase in the value of a property due to various factors like market conditions or inflation?

The term that describes the increase in the value of a property due to factors such as market conditions, demand, and inflation is "appreciation." This concept is crucial in real estate, as it directly affects the investment potential of a property over time. Properties can appreciate in value for various reasons, including improvements made to the property, better local amenities, or a thriving economy that leads to increased demand for housing.

The other terms listed serve distinct purposes within the real estate sphere. For example, "assessment" refers to the process of determining the value of a property for taxation purposes, and "assessed value" is specifically the value that tax authorities assign to a property, which may not reflect its current market value. "Appraisal," on the other hand, is an evaluation performed by a licensed appraiser to provide an estimated market value of a property, often required during a sale or financing process. Thus, while these terms are related to property valuation, "appreciation" uniquely highlights the growth in property value over time, distinguishing it from the others.