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Tutorial of Math
Interim Home Value
To calculate and (the next two concepts), we need an estimate of the home value at each year until the property is sold. Annual appraisals would be too expensive, so we estimate subsequent years' home value as the original appraised value, adjusted upwards or downwards in proportion to the regional home price index's change to arrive at the "interim home value" at any give year.
Adjust the sliders below to try it out.
Input:
Initial Appraised Value
$
0000000
500000Home Price Index at investment date (year 0)
000
200Home price Index at year n:
000
220Output:
Interim Home Value at year n.
=$ * (/)
500000
220
200
=$ *
500000
1.1
=$
550000
More Info about Interim Home Value
Interim Property Value at year n = Initial Appraised Value * (HPI at year n / HPI at time of appraisal).
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