What can be done to improve the value of a property, according to appraisal principles?

Enhancing the property with repairs or upgrades is a fundamental principle in real estate appraisal that directly contributes to increasing a property's value. This approach focuses on making tangible improvements that can elevate the marketability and functionality of the property. For instance, modernizing kitchens and bathrooms, addressing structural issues, improving curb appeal, or enhancing energy efficiency through upgrades can make a property more appealing to buyers. These enhancements not only address the existing deficiencies but also can provide a return on investment, as freshly renovated properties often command higher prices in the market, reflecting their improved condition.

In contrast, leaving the property in its current state would likely maintain its value but not increase it, given that properties often depreciate over time without maintenance or improvements. Waiting for market appreciation is a passive strategy that relies on external economic factors rather than proactive efforts by the owner. Lastly, reducing the asking price does not increase value; instead, it may attract buyers but could also signal that the property is not as desirable or valued adequately, which might lead to lower offers. Therefore, making repairs and upgrades is the most effective strategy for actively improving property value based on sound appraisal practices.