What Is Appreciation?

Appreciation is the increase in value of a property over time due to inflation, supply and demand, capital improvements and other demographic factors. It is expressed in percentages. For example, if you bought a property for $100,000, and after a year the other houses in the neighborhood were selling for $110,000, yours more then likely could as well. Therefore, your house appreciated 10%. It's worth 10% more then when you bought it.

Why Do Properties Go Up In Value?