The Term Appreciation Explained

The Term Appreciation Explained

Everyone loves to be appreciated. It could be for anything… doing a good job, working really hard, or doing something for someone you didn’t have to do. Perhaps every time you complete an act that deserves appreciation, your worth increases in the eyes of the appreciator and the appreciated.

Objects can increase in value over time.  This is known as appreciation. 

The term “appreciation” used in real estate can be defined as: “the increase in value of a property over time.”
So the actual term “appreciation” isn’t referring to the properties *total* value, but rather the percentage it has increased over time.

To show you an example using numbers:
Your parents bought a home in 1980 for $100,000.
They were able to sell their home for $300,000 in 2021.
Your parents appreciation value is 200%.

What does this mean to a homeowner?

If you own your home, appreciation is probably a big deal to you. There are a lot of factors that can contribute to the increase of your home’s appreciation. If you have put money into your home through landscaping or remodeling or if the neighborhood you live in has become a hot spot then appreciation usually occurs.

With the demand in today’s market many buyers are paying well over asking price and appraised value, which increases the value of the home and the value of surrounding homes.

Homeowners will not always benefit from appreciation, as depreciation occurs, too. If the area where you own a home becomes an undesirable area over time or if the home is not kept up and taken care of, the value could diminish over time.

If you want some tips and tricks on increasing the appreciation on your home


If you are curious what the value of your home is now, give me a call! 

I would be appreciate a moment of your time!  You can call me, Jill Bell, at 479.799.3023.

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