What is defined as an "improvement" in real estate?

An "improvement" in real estate refers to any alteration, renovation, or addition made to a property that enhances its value, utility, or aesthetics. This can include physical changes such as building new structures, extensive renovations, or adding features like landscaping, driveways, and pools. Improvements may directly impact the property's market value, making it more attractive to potential buyers or tenants.

Understanding improvements is crucial in real estate because they can significantly influence a property’s overall worth and appeal in the market. While maintenance tasks are important for functionality, they do not typically add lasting value in the same sense as improvements. Legal changes in ownership pertain to title transfers rather than physical changes to the property, and a decrease in property value does not denote an improvement; rather, it suggests depreciation or decline.