What's the difference between a C5 and C6?

[TRESinc]

I don't know where your definition of deferred maintenance came from, but it's substantially different than the definition in the Dictionary of Real Estate Appraisal.

doesn't change the fact that a new construction never occupied property that is missing a handrail is still a C1 (subject-to value, or even as-is with a ctc) and not a C6.

 

[Rich Heyn]

doesn't change the fact that a new construction never occupied property that is missing a handrail is still a C1 (subject-to value, or even as-is with a ctc) and not a C6.

The as-is condition of a property with an issue of safety, soundness or structural integrity is C6 by definition. I agree that in many cases clients will want the appraisal to be subject to correction of the issue, and the condition rating based on a hypothetical condition. This will change the condition rating to something other than C6. However, if a property has an issue of safety, soundness or structural integrity the as-is condition is C6 regardless of age or overall condition.

 

[TRESinc]

The as-is condition of a property with an issue of safety, soundness or structural integrity is C6 by definition. I agree that in many cases clients will want the appraisal to be subject to correction of the issue, and the condition rating based on a hypothetical condition. This will change the condition rating to something other than C6. However, if a property has an issue of safety, soundness or structural integrity the as-is condition is C6 regardless of age or overall condition.

not according to the definition of C6. a missing handrail on new constructions is not deferred maintenance, it's incomplete construction. you have to use the whole definition, not just the bits and pieces that you want to.

 

[Rich Heyn]

not according to the definition of C6. a missing handrail on new constructions is not deferred maintenance, it's incomplete construction. you have to use the whole definition, not just the bits and pieces that you want to.

Forget the example of the missing railing if you wish or substitute a better one, but the fact remains that a dwelling, no matter what the age or overall condition, that is affected by an issue of safety, soundness, or structural integrity is to be rated as C6.

 

[TRESinc]

Forget the example of the missing railing if you wish or substitute a better one, but the fact remains that a dwelling, no matter what the age or overall condition, that is affected by an issue of safety, soundness, or structural integrity is to be rated as C6.

if it is a result of deferred maintenance. a missing handrail is not deferred maintenance, and that IS the topic of discussion.

 

[Mr Rex]

As previously noted, the Condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select either a lower or higher overall rating on the basis of one or two minor inferior or superior areas of the property improvements. However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6. Properties with a Condition Rating of C6 are eligible for sale to Fannie Mae provided any deficiencies that impact the safety, soundness, or structural integrity of the property are repaired prior to delivery of the loan. See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for information related to completing appraisals on properties with safety, soundness, or structural integrity deficiencies.

 

[Elliott]

I called it C6 and shipped it. It wasn't a new house missing a hand rail.

 

[Peter LeQuire]

Nobody answers the hard questions. What is the difference between chow-chow, pickle relish, and piccalilli?
That's my take on the various "cubby holes" under CU...which begs the question what is the difference in C1 - C6 and excellent, good, average, fair, and poor. All descriptive judgments of the appraiser.

chow chow: http://www.foodandwine.com/recipes/chowchow
pickle relish: http://oldworldgardenfarms.com/2013...recipe-quick-and-easy-to-eat-fresh-or-canned/
piccalilli: http://oldworldgardenfarms.com/2013...recipe-quick-and-easy-to-eat-fresh-or-canned/

Years ago, I stopped at a roadside store beside US 11, north of Birmingham (not England). Picked up what I came for: as I walked to the cash register, I noticed two bushel baskets of pecans, one priced $.79/lb the other $.99/lb. I asked why the one was $.20 more than the other. The guy looked at me as if I had no more than two brain cells, and said, with a good deal or exasperation in his voice, "It's a differnt nut!"

Maybe this condition rating thing is like the SC justice saying he couldn't define ****ography but he knew it when he saw it.

From The Appraisal of Real Estate, 11th. edition: "...items in need of immediate repair on the date of inspection." (p. 268). P. 381: "Curable physical deterioration, also known as deferred maintenance, applies to items in need of repair on the effective date of the appraisal."

From DREA: "Curable, physical deterioration that should be corrected immediately, although work has not commenced: denotes the need for immediate expenditures but does not necessarily suggest inadequate maintenance in the past."

I still favor condition descriptors that provide more detail, such as in Marshall Valuation Service's Residential Cost Handbook.

 

[Pam Wyant]

one missing railing on a new construction and you call it a C6? that sounds like a stretch and a half. a missing railing is not deferred maintenance or substantial damage, which is exactly what C6 states - The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.

could the missing railing be a safety issue? definitely. is it a safety issue as a result of deferred maintenance? absolutely not. the key is that the definition specifically states the bolded above.

Not correct. It could have a significant foundation crack that needs repaired, but still be habitable. In which case it is a C5 instead of a C6. When it starts to slide off the foundation and the city condemns it, it becomes C6. C6 is damaged to the point it is NOT HABITABLE.

 

[Ms. Janet]

I called it C6 and shipped it. It wasn't a new house missing a hand rail.