Appreciation

Definition: Appreciation is an increase in a property's value over time.

Example

A property's market value rises from $250,000 to $275,000, an increase of $25,000 or 10%.

Keep the distinction clear

Appreciation is not rental income or cash received from a sale. An increase in estimated value can remain unrealized, and future appreciation is not guaranteed.

Related terms

Market Value · Depreciation · Capital Gain

Keep studying

CMA vs. Appraisal: What Is the Difference?

References: California DRE: real estate glossary

Pronunciation (US): uh-pree-shee-AY-shuhn (capitals show stress)

Pronunciation reference: Merriam-Webster