Real Estate Term of the Day: Appreciation

Real Estate Term of the Day: Appreciation

APPRECIATION – an increase in the value of property. Causes for appreciation for real estate may included inflation, demand pressures for land and buildings, physical addition, modernization, removal of a negative factor from within or outside the property, time, and sweat equity (Barron’s Dictionary of Real Estate Terms)

The Federal Housing Finance Agency (FHFA) has a really unique tool called the House Price Calculator. Where you can plug in your purchased date & purchase price and figure out what your estimated home value is based on the average appreciation rates since the home was purchased.

For example: if you purchased a property for $100,000 in Colorado during the 1st quarter of 1991, your estimated home value based on the average appreciation rates since 1991 – 3rd quarter 2012 would be around $263,800 (see graph below)

Please note that it does not project the actual value of any particular house. Rather, it projects what a given house purchased at a point in time would be worth today if it appreciated at the average appreciation rate of all homes in the area. The actual value of any house will depend on the local real estate market, house condition and age, home improvements made and needed, and many other factors. *source:

If you would like to know the value of your home in Metro Denver, CO please contact me for a FREE home evaluation report.


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