What do improvements refer to in real estate?

Improvements in real estate refer specifically to man-made objects that are permanently attached to the land or structures that enhance the property’s value and usability. These can include buildings, driveways, fences, landscaping, and any additions or modifications made to the property. The key aspect of improvements is that they are not merely placed on the property temporarily; they are intended to remain and add value over time.

Natural features of the land, such as trees, rivers, or elevation, do not fall under the category of improvements, as they are not man-made. Movable items, like furniture or personal property, are also not considered improvements since they can be removed without altering the property. Additionally, items owned by tenants, such as appliances or decor brought in by them, are personal property and do not constitute improvements to the real estate.

Understanding improvements is crucial for assessing property values and for discussions about what is included in the sale or lease of a property.