What exactly does adding value to a property entail?

[Joseph Kim]

BP Community, 

I've recently seen a bunch of SF homes and I cant help but think there are tons of untapped potential in some older properties. For example, a 1600 sqft house that has two living rooms...my immediate thought was "why not break down that wall and create an open concept living area or convert the second living space into another bedroom?" 

I seek advise because I want to know if I'm understanding the concept of "adding value" to a property, beyond cosmetic repairs, correctly. Please share your thoughts, experiences, or expertise on the subject matter. Thank you! 

Respectfully, 

Joseph Kim