What economic principle refers to the proper removal or addition of property improvements?

The principle that refers to the proper removal or addition of property improvements is known as balance. This principle asserts that the value of a property is maximized when the various components of that property are in equilibrium. It suggests that an ideal property exhibits a harmonious relationship among its features, such as land, buildings, and enhancements.

When improvements are made, it is crucial to consider whether they will add value to the property or if they may lead to an imbalance, which could diminish overall value. For instance, adding a swimming pool in a neighborhood where most homes do not have one may not yield a positive return on investment, as it may not resonate with buyers' expectations or market trends. This concept helps appraisers make informed decisions regarding property upgrades or renovations—ensuring that they maintain a balanced approach, which ultimately affects the property's marketability and price.

Other principles like substitution focus on the idea that a property’s value is determined by the cost of acquiring a similar or substitute property and does not directly address the implications of improvements. The contribution principle relates more to how much a particular improvement adds to the overall value of a property rather than the balance among existing characteristics. Eminent Domain pertains to the government's right to acquire private property for public use and is not related