Real Estate Coaching Radio

1. DEFINITIONS... What is Inflation? A general increase in prices and fall in the purchasing value of money. What is appreciation? Increase in monetary value. Appreciation is when the 'intrinsic value' of something, like a house increases. This is not the same as 'price' or 'cost', we are talking about VALUE, as in, something grows more valuable.  How does something actually gain VALUE or Appreciate?  -increased demand, not enough supply -additional value is discovered on your property; oil for example, or developed road frontage, or adding utilities where there weren't any before. -Amazon, Google or Tesla decides to relocate 3,000 employees to your town and there aren't enough homes to go around. (Supply and demand). APPRECIATION reflects a change in the actual property itself.   INFLATION can look just like appreciation, but is not ACTUALLY appreciation. Inflation is when the actual number of dollars it takes in order to purchase your property has increased. The main difference is that inflation does