What is regarded as an “improvement” in real estate?

An “improvement” in real estate refers specifically to any addition or upgrade made to a property that enhances its value, utility, or overall functionality. This can include a variety of modifications such as adding a new room, renovating existing spaces, landscaping, or installing modern appliances. These enhancements often lead to an increase in market value and can significantly impact a buyer's or investor's perception of the property.

In the context provided, a property that has been sold does not constitute an improvement because the term focuses on enhancements rather than transactions. A decrease in property size indicates a loss of value or space, which contradicts the concept of improvement. Lastly, routine maintenance tasks, while important for preserving the property's condition, do not typically result in value enhancement; they are essential for upkeep rather than for creating an improved state of the property.