Property Valuation
What is 'over-improvement' in real estate?
AA property that has been improved with features that cost more than they add to the property's market value✓ Correct
BA property with too many bedrooms
CA renovation that violates zoning codes
DA property improved above the lender's appraised value
Explanation
An over-improvement is one whose cost exceeds its contribution to the property's market value (violating the principle of conformity and contribution). For example, adding a $100,000 swimming pool to a neighborhood where pools add only $20,000 in value.
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