C3 Vs Average

[TRESinc]

Lets take a poll:

A house that is located in a tract built subdivision and is what is known as a starter home. A typical square vinyl sided home with minimal upgrades.

I say most appraisers rate this as a Q4 home because of lenders and AMC's. I say it is a Q5 home.

based solely upon your use of the word "minimal", and your minimal description, it could be classified as a Q5. i can't speak for your market but in mine i have yet to see a tract home fall into a Q5 rating, even for the cheaper builders like ryan. Q4 states:

Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some upgrades.

this is a more accurate description of a "starter" tract home in my market. they are all built from standard plans but typically have some form of a modification (different elevation, bump outs, extension, etc) and all come with some form of fenestration (because no one wants to have the cheapest, most plain house in the development). most of the finishes are builder grade along with some varying but minor upgrades.

your market may be different.

 

[NC Appraising]

based solely upon your use of the word "minimal", and your minimal description, it could be classified as a Q5. i can't speak for your market but in mine i have yet to see a tract home fall into a Q5 rating, even for the cheaper builders like ryan. Q4 states:

Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some upgrades.

this is a more accurate description of a "starter" tract home in my market. they are all built from standard plans but typically have some form of a modification (different elevation, bump outs, extension, etc) and all come with some form of fenestration (because no one wants to have the cheapest, most plain house in the development). most of the finishes are builder grade along with some varying but minor upgrades.

your market may be different.

Here is a good example of a Q5 builder, but I would say that 99% of appraisers would rate it as a Q4 home. https://www.wadejurneyhomes.com/ https://wadejurneyhomes.com/payton-downes-2/

Both are being built by a national home builder, both are using stock building supplies, all have modifications, etc.

See below, most appraisers would rate both homes as being Q4. In reality, both are located in tract home projects, using "stock" building materials. Both had the options of upgrades and minor modifications.


Q5 House, appraisers label it as a Q4 mainly because of lenders: Sold $180k



Q4 Home located in a adjacent PUD. Sold $240k

 

[NC Appraising]

Still Q4 or Q3? Tract built home in a tract built PUD sold for $325. Brick front. 9' ceilings, mouldings, two story great room, trey ceilings, hw and tile floors. In my opine, still a Q4 rated home.....Fannie needs to re-write and update.

 

[TRESinc]

as i am sure you are aware basing a judgement call solely on a single photo of the front of a house is not the right way to do it and i certainly would not hang my hat on that fact alone when choosing my rating. that being said the second house would have, imho, significantly more "curb appeal" and i would hope that a 33% increase in the price would equate to more upgrades and options thus raising the Q rating.

my house is a perfect example. outside it is a plain rectangle with little fenestration. only real exterior selling point would be the newer vinyl siding and windows. once inside though it is a completely different story. i have had a few contractors over the years come inside for bids and/or upgrades and they have all alluded to the fact that my house is a "sleeper", meaning it looks as plain as anything from the outside but inside it's a whole new ballgame (12x24 tiles, copper farm sink, all glass main bath vanity, etc).

 

[J Grant]

Brick house is Q3,

the first 2 made of wood grey house is a Q4 (without going inside lol) yellow might approach c3 , hard to tell from a photo...c 4 but might even be C 3, but more a C4. . I think you are tough on houses calling either of those a Q5.

I fail to see how you rate the brick house a Q4...it's quality and design rates a Q3 imo

A Q5 to me is true low end, 7 or 8 foot flat ceilings, very basic stock materials and cheap windows , vinyl or carpet floors, particle board or base level wood veneer cabinets etc.

 

[KYLECODY]

Brick house is Q3,

the first 2 made of wood grey house is a Q4 (without going inside lol) yellow might approach c3 , hard to tell from a photo...c 4 but might even be C 3, but more a C4. . I think you are tough on houses calling either of those a Q5.

I fail to see how you rate the brick house a Q4...it's quality and design rates a Q3 imo

A Q5 to me is true low end, 7 or 8 foot flat ceilings, very basic stock materials and cheap windows , vinyl or carpet floors, particle board or base level wood veneer cabinets etc.

Reading my mind with that response. The UAD definitions are open to interpretation but common sense and "do as your peers do" has to come into play at some point. Q5 or worse is generally reserved for low quality homes that are extremely basic not typical, basic tract homes such as photo 1.

I really like photo 3, brick fronts add tons of character to a home. Certainly not your typical, basic exterior.

 

[Deleted member 130081]

Still Q4 or Q3? Tract built home in a tract built PUD sold for $325. Brick front. 9' ceilings, mouldings, two story great room, trey ceilings, hw and tile floors. In my opine, still a Q4 rated home.....Fannie needs to re-write and update.

View attachment 32837

Q4? No. Not unless the other 3 sides are vinyl and the interior is junk.

 

[EddieB]

Seeing as how none of us will most likely ever appraise a Q1 and few Q2, that really leaves just three common rating levels.

I believe that to be very limiting.

 

[JTip]

Q5 wouldn't have shudders, exterior lights or electric garage door opener......geeze, my house must be a Q7....

 

[residentialguy]

Q5 wouldn't have shudders, exterior lights or electric garage door opener......geeze, my house must be a Q7.