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| APPRECIATION |
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| an increase in the value of property. Causes of appreciation for real estate may include inflation, demand pressures for land and buildings, a physical addition, modernization, removal of a negative factor from within or outside a property, and sweat equity. |
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| Example Abel sold for $100,000 land that he purchased 10 years ago for $60,000. During that time the amount of appreciation was $40,000. |
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