What Is Superadequacy?

Superadequacy is a form of functional obsolescence where a feature or system exceeds what the market actually wants or needs — meaning its cost is higher than the value it contributes.

Most useful for: Commercial Investor · Appraiser
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At a Glance
Superadequacy
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Definition
Plain-English meaning
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Why It Matters
Practical impact
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Related Terms
3 connected concepts
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A home with an oversized commercial-grade HVAC system for its square footage has a superadequacy: it cost more to install than it adds to the home's market value.

Example

A home with an oversized commercial-grade HVAC system for its square footage has a superadequacy: it cost more to install than it adds to the home's market value.

Why it matters

Appraisers deduct for superadequacy in the cost approach, since a buyer generally won't pay extra just because a feature was expensive to build.

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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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