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Unimproved land in real estate is defined as land that does not have certain basic required services necessary to utilize it for other purposes. Unimproved land in real estate is defined as land that does not have certain basic required services necessary to utilize it for other purposes. These include electricity, telephone, street access, or water available.
Sometimes the terms âsurplus landâ and âexcess landâ are used interchangeably. However, the definitions make it clear that there is one large difference between the two. Excess land must always be âvalued separatelyâ from the improved portion of the site.etermining if the market will pay more for a property with surplus land than one with a smaller site is the final step in this process. As surplus land cannot be separately valued, any such recognition of value impact must be incorporated in the sales comparison approach adjustment grid.