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You lose a building that doesnt get adjancency or bonuses anymore but costs the same as it did and you gain a building that costs upkeep but delivers actual gains.
I do agree the concept isnt explained clearly enough in the game
The game doesnt tell you what you will lose once you overbuild a tile. However, i can help you out with that; Basically all buildings have a base yield value + Adjacencies; example; In the antiquity age, if you build a Science building (Library) next to two resources you would get +2 (Base) plus an extra +2 from resource adjacency = to a +4 Library.
Once you reach exploration age, ALL of your buildings will lose its adjacencies but keeping its base value, unless its an ageless building. Therefore your library will go from a +4, to a +2. That is when you overbuild a new science exploration building (Observatory) on top of your library. Once you do that, you will lose the +2 science to gain +4 base from the observatory and + 2 from the two resouce adjacency. In the end, you will lose 2 science to gain a +6 once overbuilt. The same logic applies to every building unless said otherwise.
Hope that clears things out for you!
Have fun!