Do you replace nob and tube wiring

[Jeff Higgins]

I am currently rehabbing a property that I am wanting to BRRRR. I had the city come out to the property to help me understand the code if I touch/work on different items. currently in the house there is nob and tube wiring. the inspector said if I leave it alone I will not have replace it. I can simply frame around the metal conduit with 2x2 and frame out the basement walls. if I want to hide the wiring in the existing walls I would need to replace the wiring. I have to tear down the basement ceiling for several reasons so the floor joists will be exposed.

My question is for when I go to have it appraised will the new wiring make up the cost of the investment in new wiring?

thank you in advance for any advice.