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Over-Improvement or Super Adequacy?

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Jeff Horton

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Jan 15, 2002
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Certified Residential Appraiser
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Alabama
Someone explain the difference to me in an Over-Improvement and a Super Adequacy? Is there a difference or is this just saying the same thing in two different ways.

I have always referred them as an Over-Improvements. An Appraiser freind of mine always refers to them as a Super Adequacy. Just curious now.

Jeff <*><
 

David S. Roberson

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Certified Residential Appraiser
State
Tennessee
Saying things like "superadequacy" and "incurable functional obsolescence" instead of "overbuilt" or "really screwed up floorplan" allows us to charge higher fees!
 

Doug Walters

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Nebraska
Jeff:
It is easy to see why many appraisers interpret these two words to mean the same thing. Here are the definitions of both words as presented in Real Estate Appraisal Terminology by Byrl N. Boyce of the former appraisal organization known as the Society of Real Estate Appraisers.

Overimprovement- An improvement which is not the most profitable for the site on which it is placed because of its excessive size or cost, and consequent inability to develop the maximum possible land value. May be temporary or permanent.
An overimprovement typically reflects environmental obsolescence, although a substantial market may exist for such property among a group which takes personal pride in owning the most expensive home in the block and is willing to pay a price commensurate with cost.

Superadequacy- A greater capacity or quality in a structure or one of its components than the prudent purchaser or owner would include or would pay for in the particular type of structure under current market conditions.

Now the interesting part is to ask for examples. So let's see some folks take a crack at it. :wink: Residential examples and Commercial examples. :twisted:
Doug Walters
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
Although they might be a "little" radical but someone asked for examples.

House with marble columns out front, marble floors in foyer, kitchen, baths and a 478 channel satellite dish. Of COURSE the house is located in a MHP. OVERIMPROVEMENT. Except for the satellite dish of course.


1,800 square foot rancher. Of course, the 1,800 square feet does not count the 2,000 square foot family room. SUPERADEQUACY.

As far as commercial/industrial it could be anything from a 100,000 square foot warehouse (non-partitionable for one reason or another) in an industrial park where the largest building is 25,000 SF (overimprovement), TO a 25,000 SF machine shop with 12,000 SF of office space (superadequacy).

Well, I said they MIGHT be a little radical.
 

Bobby Bucks

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Jan 27, 2002
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Real Estate Agent or Broker
State
North Dakota
Doug
Excellent definitions. My residential examples would be as follows....Overimprovement....in a subdivision of 50 x 100 foot lots with singlewides, a doublewide sitting in the middle of two 50 x 100 foot lots and an owner who thinks it's worth more than the rest of the subdivision combined. :)

Superadequacy.....in a neighborhood of doublewides is a doublewide with a 900 square foot "Bama" room attached to the rear with ceramic tile and an indoor pool. (sorry Jeff) :)
 

Austin

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Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Doug: That definition of over-improvement is so contorted that it would take a book to address all of the ramifications of what he said. That first sentence is a dozy. The crux of his statement is that the criteria for determining the excess cost and or size are in relation to what? It has to be in relation to the highest and best use of the lot as though vacant and the value of the lot is a function of the market environment. Then he says “because of the excesses you can’t develop the maximum land value.” He seems to be saying that the obsolescence is in the land, but if the lot is worth X dollars vacant, how can an improvement diminish the lot value. Land value is a given. It is what the market says it is. You can’t change the market balance by missing the highest and best use of the site with the wrong improvement. Then he says: “An over improvement typically reflects environmental obsolescence-” How does environmental obsolescence and the wrong highest and best use of the site as though vacant correlate with site value? Man, that definition gives me a headache!
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Everyody's ideas are pretty good.

Superadequacy is the upscale version of overimprovement.

They changed the word's usage about 89years ago.

WHEN you have to describe what a word means at the time of use in its own context, then a semantic difference is meaningless!

The difference is in the eye of the be-muser.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
So Overimprovement if it's a "regular" area, Superadequacy if it's an "upscale" 'hood?

Or just, "what were they thinking?" :?

Now I get it :!: :lol:
 

Ramona

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Joined
Feb 3, 2002
Professional Status
Licensed Appraiser
State
Maryland
Overimprovement: when a homeowner decides to gold plate the floors of his otherwise typical home, just because he likes gold plated floors.
Superadequacy: A home has 10 fireplaces in a neighborhood where 1-3 is the norm.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Doug;
according to your definition "Overimrpovement" one thing caught my eye and that was the qualifying portion that notes;

"An overimprovement typically reflects environmental obsolescence" 8O
so if I git your meaning, any house that has a "paved driveway" is an overimprovement :?: and if a concrete sidewalk runs in front of the house again an overimprovement :roll: well that makes life much easier- we can now equate all housing in the cities as "overimrpoved" vs the suburbs :lol: :lol:

These two definitions were probably a take off on the word (sign) YIELD - does anyone know what it stands for 8O haven't seen anyone driving that knows what it stands for :!:

See Ya 8)
 
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