Appreciation

An increase in a property's value

A home generally increases in value over time. If you buy a house for $100,000 and sell it one year later for $110,000, the house has appreciated by $10,000. Appreciation increases your net worth, as well as your equity - the difference between your home's market value and the amount of money you owe on your mortgage. The three main factors that affect the future value of your home are its location and condition, and the selling price of similar properties in the area.

See: Comparable sale (comp)
Compare: Depreciation