The placement of improvements on a property that are excessive and consequently inconsistent with the overall size, quality, or appearance of other improvements within the general vicinity. An example would be the construction of a large expensive home within a neighborhood consisting almost exclusively of small, detached, order bungalows.
The cost of the over improved property may not be reflected in market value as determined by the average buyer ready, willing, and able to acquire the property. For appraisal purposes, the appraiser would typically calculate a loss in value (depreciation), owing to locational obsolescence. The loss in value is due to negative external influences in the immediate area.
Past vocabulary words:
Keith Marshall is a real estate agent with Prudential Grand Valley Realty, serving Kitchener, Waterloo and Cambridge. If you’re thinking of buying or selling your home, please give me a call. I aim to take the stress and mystery out of the home buying and selling process.