valuation

appreciation

Appreciation is an increase in a property's value over time. It can come from market forces such as rising demand, limited supply, inflation, or neighborhood improvements, or from upgrades the owner makes. Appreciation is the opposite of depreciation. It is a key source of equity growth and investment return, but it is not guaranteed and is realized only when the property is sold or refinanced.

Exam tip: Percent appreciation = (new value - old value) / old value. Divide by the original value, not the new one.
Example: A home bought for $200,000 and now worth $230,000 has appreciated $30,000, or 15%.

1. A lender's loan officer sponsors a broker's client appreciation party, but only if the brokerage's agents send the lender at least ten loans per quarter. Under RESPA, this is:

Answer & explanation

Answer: A. Regulation X allows normal promotional and educational activities only when they are not conditioned on the referral of business and do not cover the referral source's expenses. Tying the sponsorship to a loan referral quota makes it a thing of value for referrals.

Related terms & state variants

appreciation rate depreciation leverage return on investment

Sources

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Last verified: 2026-10-23