1. What is the Price Target Formula?

The price target formula projects future real estate values based on current price and expected appreciation rate. This helps investors and homeowners estimate potential future property values.

2. How Does the Calculator Work?

The calculator uses the price target formula:

Where:

• \( Current \) — Current property price in dollars
• \( Appreciation \) — Expected annual appreciation rate (as percentage)

Explanation: The formula calculates the compounded growth of a property's value over time based on the appreciation rate.

3. Importance of Price Target Calculation

Details: Calculating price targets helps in investment decision making, financial planning, and setting realistic expectations for property value growth.

4. Using the Calculator

Tips: Enter current price in dollars and expected annual appreciation rate as a percentage (e.g., 5 for 5%). Negative values can be used for depreciation scenarios.

5. Frequently Asked Questions (FAQ)

Q1: How accurate are these projections?
A: Projections are based on mathematical formulas but actual market conditions may vary significantly from assumptions.

Q2: What's a typical appreciation rate?
A: Historically, U.S. real estate appreciates 3-5% annually, but this varies by location and market conditions.

Q3: Can I calculate multi-year projections?
A: This calculator shows one-year projections. For multiple years, compound the result repeatedly.

Q4: Does this include inflation?
A: No, the result is in nominal dollars. For real (inflation-adjusted) values, subtract inflation rate from appreciation.

Q5: How does this compare to Zillow's Zestimate?
A: This is a simple projection tool, while Zestimate uses complex algorithms and recent sales data.