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overimprovement

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overimprovement

Erecting improvements at prices that are out of proportion to the land value or to the area. Each market will have its own rules of thumb regarding ideal ratios of land cost to improvement construction costs.



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The basic rule of thumb when preparing your home for the market is to avoid doing too much overimprovement.
Or because the kitchen may represent an overimprovement (superadequacy), functional obsolescence should be considered.
Even homeowners who benefited from a runup in house prices can still regret overimprovement.
 
 
 
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