What is meant by the term ‘improvement’ in real estate?

The term 'improvement' in real estate refers to any addition or alteration that enhances the value of a property. This definition encompasses a broad range of activities, including new construction, renovations, or upgrades that contribute positively to a property's market value and functionality. Improvements can vary significantly in scope, from simple cosmetic changes, such as painting or landscaping, to larger structural changes, like building an additional room or upgrading major systems within the property (like plumbing or electrical systems).

Understanding this concept is essential for property investors and homeowners, as it directly influences property evaluations, potential return on investment, and overall market appeal. By focusing on enhancements that provide tangible benefits, property owners can make informed decisions that align with their financial and personal objectives.