Overimprovement

Definition: An overimprovement is an improvement whose size, quality, or cost exceeds what the site and market economically justify.

Example

An owner installs highly specialized luxury features that typical buyers will not pay enough to support.

Keep the distinction clear

Expensive does not automatically mean overimproved. Compare the improvement's market contribution with the property's highest and best use.

Related terms

Highest and Best Use · Regression (Appraisal) · Cost

Keep studying

Comparable Sales: Adjustments and Weighted Values

References: California DRE: appraisal and valuation concepts

Pronunciation (US): oh-ver-im-PROOV-muhnt (capitals show stress)

Pronunciation reference: Merriam-Webster