C1 or C2

[J Grant]

See if this scenario helps you understand:
Two homes are updated with new flooring - one with vinyl flooring and one with handscraped hardwood flooring. The appraiser performs a matched paired analysis of homes with similar features and determines the market places a $10k premium on homes with hardwood floors vs homes with vinyl flooring. Now - where does that $10k adjustment go? Can't go in the condition field as both sets of flooring are new (i.e. C1). The only other options are design or quality... (in my head the Jeopardy music is playing and Turd Ferguson is wearing a giant cowboy hat)...

there is a third option -type in one of the blank spaces on the bottom of the SCA grid "Upgrades," . That is what I do, and I make the adjustment for the wood floors on that line and explain it in a narrative comment.

An appraiser can make the adjustment for the wood floors under quality if they want, but in my opinion, creating a line item category for it labeled as upgrades is cleaner.

An appraiser could choose to put the adjustment on the quality line. It makes it more muddled IMO, but if they want to take that option, then that is their call. Of course, it would not go on the condition line.

 

[J Grant]

https://www.mckissock.com/blog/appraisal/understanding-uad-quality-ratings/

 

[Surf Cat]

Subject was sold as new construction about 9 months ago. Now it is under contract as my subject. I was told it was never lived in. C1 claims "very recently constructed."

Hey Shrub,

Was the Subject contract price in line with other, new construction, never lived in, dwellings? Or, was it lower? If lower, declining market? Or did the market perceive a stigma since it sold, then in under a year, went back on the market?

What happened? Inquiring minds need to know.

 

[alebrewer]

there is a third option -type in one of the blank spaces on the bottom of the SCA grid "Upgrades," . That is what I do, and I make the adjustment for the wood floors on that line and explain it in a narrative comment.

An appraiser can make the adjustment for the wood floors under quality if they want, but in my opinion, creating a line item category for it labeled as upgrades is cleaner.

An appraiser could choose to put the adjustment on the quality line. It makes it more muddled IMO, but if they want to take that option, then that is their call. Of course, it would not go on the condition line.

So what makes the approach of comingling quality and upgrades a more satisfactory endeavor than comingling quality and condition? Two different ways of addressing the same issue - that is not a condition issue. I believe it falls under a 'quality' feature and you think it's 'upgrades'. Why do you have to start an argument over that? Hopefully the only Certs your signing are your own...

 

[alebrewer]

I did not state it as a fact; that is your take on things. Just as you do in our posts; I am voicing my opinion - need I say it every time i write a post like a legal disclaimer ? The language in the UAD for quality references the construction and design of the houses, not just the interior upgrades.

Q descriptions reference the architecture itself, and this is what the quality condition ratings are for. This fact feeds into other aspects: Are upgrades an over-improvement for certain houses, or are they a buyer expects as the norm/typical for other houses?

Citation?

 

[Terrel L. Shields]

On the contrary, if they put new hardwood floors in a home, that could affect both condition and quality - depending on the quality of the flooring. If they renovate a kitchen, that's a condition issue right? But what if they renovated it with Wolf and Sub Zero appliances? That goes to quality, does it not?

Something in the bible talks about the folly of sewing new cloth on old clothes. "Quality" to me reflects the basics of the original structure, the cost of the materials used - brick not vinyl, crown molding not plain, Anderson windows not Lowes, 16" centers not 24", expensive lights, copper not plastic, tile or slate, not cheap Timko shingles, Solid doors not hollow core...

Condition plus age reflects "effective age".

 

[sputnam]

Don't fall into the trap. The C and Q ratings are not objective and they are not single point values. They are probably a bit more objective than what we used before and they are ranges. In your reporting you pick the best fit. In your analysis, you account for differences between the subject and the comparables. If that means you have a C3 subject and a C3 comp that needs adjustment... you make the adjustment and summarize the support and rationale for your conclusion.

 

[alebrewer]

Something in the bible talks about the folly of sewing new cloth on old clothes. "Quality" to me reflects the basics of the original structure, the cost of the materials used - brick not vinyl, crown molding not plain, Anderson windows not Lowes, 16" centers not 24", expensive lights, copper not plastic, tile or slate, not cheap Timko shingles, Solid doors not hollow core...

Condition plus age reflects "effective age".

Just so I'm not confused - if the hardwood floors were put in originally, you'd make a quality adjustment. If they were installed retrospectively, it wouldn't be a quality adjustment. Am I reading that right? I really hope not....

 

[Terrel L. Shields]

I really hope not....

If you put maple hardwood floors in a MH quality house, it's still a low-quality house. Now, if you tear out the walls made of paneling, replace with thick sheetrock, put crown molding and hardwood floors plus new fixtures, new doors, etc. yeah, it might change the quality. But again, putting new cloth on an old garment isn't going to move the needle. And all you have done is created a super-adequacy in an inadequate home.

 

[alebrewer]

If you remember the scenario, it was a relative comparison between two (or more) properties wherein: you extracted from the market that the market will pay an additional $10k for homes with hardwood floors vs homes with vinyl flooring (both sets of flooring being new). The question was: where would you place that adjustment? Quality or condition? Remember - both sets of flooring are new.

As to the point about putting good quality flooring in a low quality home - you're right - it's still a low quality home, but it's now relatively higher quality than when it didn't have the high quality flooring.

You can't get around it, my friend. Quality is more than the bones. It's the materials used as well.