Underimprovement
An improvement below the level the site and neighborhood would support — a modest cottage on an estate lot. The site is not being put to its highest and best use, and value tends to ride on land more than structure.
Related Terms
Over-Improvement (Superadequacy)
An improvement that exceeds what the neighborhood supports — the $400,000 kitchen in a $350,000 market.
Highest and Best Use
HBUThe reasonably probable use of a property that results in the highest value, considering uses that are legally permissible, physically possible, financially feasible, and maximally productive..
Principle of Conformity
The principle that property values are supported when properties in an area are reasonably similar in use, style, and value.
More in Property Characteristics
View allGross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
Below-Grade Area
Any portion of a building that is below the ground level on any side.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.