If you bought a house for $200,000 and it’s worth $300,000 the next year, it has appreciated. By a lot. You should be appreciative of that appreciation. “Appreciation” itself is a very general term, but there are two more specific subtypes: market appreciation and forced appreciation. The former is what we’ve been mentioning extensively—the national, regional, and local factors that give your home’s value a little more oomph each year. The latter is a fancy way to talk about adding value to the home itself, like fixing up a relic of the 1970s by removing the shag carpet and wood paneling. These may sound like two completely different concepts, but they’re both just different ways a house can increase in value over time.
Link to the book: https://store.biggerpockets.com/products/first-time-home-buyer
Link to the excerpt: https://drive.google.com/file/d/1pBn2nOtpAhpYAemRT1KmDzFOUTb4XE8M/view
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