If a property is over-improved, what might it face when attempting to sell?

When a property is categorized as over-improved, it means that the enhancements made to the property exceed what is typical for the neighborhood or market it is situated in. This can lead to a lower resale value for several reasons.

Buyers in the market may not be willing to pay a premium for features that exceed their expectations or the neighborhood standard. If a home has extravagant features or high-end finishes that are not common in the area, potential buyers might feel that they could not recoup the extra investment if they were to purchase. Consequently, the property may linger on the market longer, requiring price reductions until it aligns more closely with buyers' expectations and comparable sales.

In other words, while over-improvements can be appealing, they can create a disconnect between what the seller expects in value and what potential buyers are willing to pay, ultimately resulting in a lower resale value.