C1 Vs C2

[nicholz12]

Lawyers get paid for that kind of thing, tripping up a case for a technicality or word out of context. We are expected to use and understand terms and words as they are used in the context of our field ( real estate).

Especially with FNMA... they know how to use words in real estate, don't they.

 

[Terrel L. Shields]

Most homes here are not placed "on the books" until the year of reappraisal. So your comps may be 1-2 years older than the assessors card says.

 

[residentialguy]

"New construction: a building project that has been completed recently, i.e., within the past 3 years."
- The Dictionary of RE Appraisal

 

[Tim Hicks (Texas)]

Look up "building project" now.

 

[Amy Perkins]

My thought is that it is a C1 because it was not occupied by an owner yet. Since the appraiser has it as a C1, I would just go with that unless you could actually determine there was wear and tear.

 

[glenn walker]

It was not occupied ....it was a ******* sales office, see your medical doctor

 

[residentialguy]

I am in the middle of a review and have been asked to determine UAD compliance. The subject was a model home for over a year with the appraiser classifying it as C1. Per UAD, C1 is for anything that has not been occupied and my argument is that it was occupied as a sales office so cannot be classified C1. My other question is how do most classify the age of a home. One of the comparables was completed 3 months prior to the appraisal date, however, it was before January 1st so the appraiser said it was one year old instead of zero. These issues do not affect original value but have to do with correct UAD classifications, which I am trying to assess. Did a search of these questions in this forum but found nothing.

There was actually a poll done to this very same question. Results: Majority said "It depends on the condition noted during the inspection"
http://appraisersforum.com/showthread.php?t=187684

 

[residentialguy]

I've seen models that have very little traffic and look brand new. I seen some models that are grand central station where C2 would be an exaggeration. It seems reasonable to me that maybe that's why we inspect...to determine the state of condition.

Certainly UAD language allows it. Fannie UAD even address the issue of OP where it is close to both in Question #14 https://www.efanniemae.com/sf/lqi/umdp/pdf/uadfaqs.pdf
which states: "The Condition and Quality rating that most closely fits the property must be selected. Comments and any additional pertinent information that will provide greater clarity around the choice of the condition and quality ratings must be provided".

The qualifications for C1 are: House must be vacant (goes with page 1 vacant box) and must be "recently constructed" in which an extended time vacant falls within the meaning of "recently constructed", but must not have Significant Physical Depreciation due to lack of upkeep.

If the appraiser's inspection shows support for a C1, then he's not wrong.
If the appraiser's inspection shows support for a C2, then he's not wrong.
If the appraiser's inspection shows support for a C3, then he's not wrong.
If the appraiser's inspection shows support for a C4, then he's not wrong.
If the appraiser's inspection shows support for a C5, then he's not wrong.
If the appraiser's inspection shows support for a C6, then he's not wrong.