Superadequacy
An improvement or feature that exceeds what the market demands for the property type and location, resulting in a cost that is not fully recoverable in the sale price. A form of functional obsolescence.
Examples of superadequacies include a gourmet commercial kitchen in a modest neighborhood, an in-ground pool in an area where pools don't add proportional value, oversized garages, or extensive custom features in a tract home neighborhood. The appraiser must estimate the actual value contribution of the superadequacy (not its cost) and treat the difference between cost and value contribution as functional obsolescence. Superadequacies are commonly misunderstood by homeowners who expect to recover 100% of their renovation costs.
Related Terms
Functional Obsolescence
A loss in property value caused by deficiencies or superadequacies within the property itself, such as an outdated floor plan, insufficient electrical capacity, or an over-improvement relative to the neighborhood..
Depreciation
A loss in value from any cause.
Cost Approach
A valuation method that estimates value by calculating the cost to reproduce or replace the improvements, subtracting accrued depreciation, and adding the land value.
Adjustment
A dollar or percentage modification applied to a comparable sale's price to account for differences between the comparable and the subject property.
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.