When a homeowner enhances the value of their property by making physical improvements, this is known as what?

Enhancing the value of a property through physical improvements is accurately termed renovation. Renovation refers specifically to the process of updating, repairing, or otherwise improving a property's interior or exterior while adding new features or modifying existing ones. This can include anything from updating kitchens and bathrooms to adding new rooms or structures, thereby increasing the property's market value.

Appreciation, while often associated with property value increases, pertains to the overall market growth in property values over time due to economic factors, rather than specific improvements made by the homeowner. Restoration involves returning a property to its original condition or style, preserving historical aspects, which may differ from general enhancements and modernization. Maintenance usually refers to routine upkeep and repair tasks that preserve a property's existing condition rather than improving its value. Therefore, renovation is the most accurate term for the context described in the question.