Property Valuation
An underimprovement to a property occurs when:
AThe property has too many rooms for the market
BThe property's improvements are inadequate relative to the land's potential highest and best use✓ Correct
CThe building is smaller than the setback requirements allow
DThe property lacks modern amenities
Explanation
An underimprovement (deficiency) exists when a property's existing improvements do not fully utilize the land's potential. For example, a one-story building on a high-traffic commercial lot that could support a larger retail center is underimproved.
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