Overimproved for the Neighborhood? Here’s How That’s Handled
Ever listed a home with a unique feature or upgrades far beyond anything else nearby?
Appraisers refer to this as superadequacy or over-improvement and yes, it matters.
We typically determine whether the market supports the premium features. For example:
Marketability – Are there sales in the neighborhood (or in a competing area) that include a similar feature or over-improvement? Without comparable sales, we can’t demonstrate market support or justify an adjustment for the premium feature.
Cost does not equal value – Just because something was expensive to install doesn’t mean the market will pay for it.
Have you come across any great examples of over-improvements? Was your client able to recover the cost?
If you’re listing something unique, I’m happy to review comps or discuss how value might be reconciled in today’s market.
