Property Valuation
In Michigan, 'underimprovement' of a property occurs when:
AThe property has deferred maintenance
BThe improvements are less than the highest and best use would support, leaving potential value unrealized✓ Correct
CThe property has fewer rooms than the neighborhood average
DThe property's renovation budget was insufficient
Explanation
Underimprovement is when the current improvements on a Michigan property are below the level that the highest and best use would support. For example, a one-story home in a neighborhood of two-story homes on the same lot size is underimproved.
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