After announcing that a new city park will soon be developed, homes in the immediate area experience a rise in value. This is an example of which of the following principles of value

Change in property value refers to fluctuations in worth due to various factors, including market dynamics or economic conditions. While the announcement of the park represents a change, it does not specifically explain the mechanism driving the increase in home values in this scenario, which is primarily due to anticipated future benefits.

The contribution principle states that the value of a property is determined by how much a particular improvement adds to the overall value. In this case, while the new park will contribute positively to the area's value, the immediate rise in home prices reflects anticipation of future benefits rather than the current contribution of the park itself.

The highest and best use principle pertains to the most profitable use of land that is legally permissible, physically possible, and financially feasible. Although the development of a park may improve the overall use of the area, the increase in home values is not due to an evaluation of the highest and best use but rather the expectation of enhanced neighborhood desirability due to the park's future presence.