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Real Estate Glossary

What is Estimated Increase In Equity?

Equity is the difference between the market value of a property and the amount still owing on the mortgage. As a property increases in value over time, the equity in the property also increases. The estimated increase in equity is an estimate of how much the equity in a property is expected to increase over a certain period of time. This estimate can be based on factors such as historical data on the appreciation of similar properties in the area, or the buyer's own plans for improving the property.