Real Estate Terms Glossary
What is an Appreciation?
In real estate, appreciation typically references the increase in value or a property over time. You can realize appreciation by investing in your property (i.e. improving the kitchen and bathrooms), inflation, or increased demand to live in your area or neighborhood. Appreciation is the reason many investors choose to invest in real estate and increase return.
Appreciation Examples
Examples where you will find appreciation include:
- Example 1. Appreciation may occur if demand for your area, neighborhood or city increases.
- Example 2. Appreciation may occur if you upgrade your kitchen and bathrooms.
- Example 3. Appreciation may occur if you build an add-on to the house.
- Example 4. Appreication may occur if you build a new deck or gazebo in the backyard.
Here’s Investopedia’s definition of appreication .
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