C4 Condition?

[Leon Marcus]

Conditions sent on a report I just did asking me to reconsider the condition for this property and changing it to C4. Both bedrooms had no flooring and most walls looked like this. Well this may have been the worst room.

 

[residentialguy]

That is C5 all day. That is not minor differed maintenance, nor is it normal wear and tear, as C4 suggests... but rather the functional utility and overall livability are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.

It wouldn't take much to bring it to a C4...but that doesn't mean you can over look it. If they don't think it's a big deal, they can push it through on C5. Oh, but then they don't have you to hang, so they would rather you be liable.

Tell them that it sounds like they are trying to pressure the appraiser to inflate value. Then ask them if that is legal now. That'll shut em up.

 

[Pilgrum]

I think a property can meet the UAD definition of C4 and be inferior to other properties meeting the same definition.
Disclose it and explain it. Make adjustments if they are due.

 

[Meandering]

Would anyone give a property that looked like this a C4 condition rating?

Those that already know their client won't accept reports with C5 ratings. That's who would do it.

 

[Leon Marcus]

Spent all day Thursday on this. The reviewer could not understand "my" criteria for condition ratings. I think they are very clear. Was told "Personally I would rather live with no carpet than someone else’s nasty carpet. We send these out C4 all the time and its excepted by underwriting"
Went on to say missing flooring, cracks and loos tile in the bathroom, cracks in the wall where the wall meets the ceiling along with some staining from being wet and walls like this do not meet the definition of C5.
I see no way this is average or adequate which is what C4 is.

 

[Leon Marcus]

I was told I am just about the only appraiser that would, did, not call this C4. Now this was the worst room but the other bedroom was the same just less "grime" on the walls. Most other walls had some kind of dirt stuff all over, a crack where the wall meets the ceiling with some staining and loose and missing tile on the bath floor. Was told "All other appraisers send this in as C4 and underwriters expect it as C4 all the time." I guess I am not all other appraisers.

 

[residentialguy]

Condition Ratings C1, C2, C3, C4, and C5 as previously defined are eligible for delivery in “as is” condition for FNMA

 

[residentialguy]

Well this may have been the worst room.

Keep in mind, that only C6 can be caused by a single issue. Otherwise, the condition ratings are a holistic look at the improvements. If this is the worst, then it could be a C4 and adjusted accordingly.

 

[Tom Woolford]

I've usually considered paint as a minor matter not rising to a C5 designation. Carpet, that's debatable. I Reserve C5 for major repairs and C4 for normal wear. Since carpet is a rapidly depreciable component and many buyers replace it first thing I'd mention it, adjust accordingly and move on.

 

[Leon Marcus]

C4 is a house in average condition. Nothing spectacular nothing horrible, maintained to some degree that is not falling apart. You go to buy a house, obviously you want one in great condition but you tell the agent you would not mind a house that needs a little work or somewhat dated. He/She brings you to this place and a bunch of other houses like it. You would have no problem with that? This is an "average" house? What does your house look like? I cant imagine what I would say if I got a call or letter from Brian Weaver asking me to defend this as an average house. I may be alone, I was told I am the only one that has a problem with the condition of this house. I understand walls that are a little dirty but most all walls were similar to this. So it is your opinion that this kind of home owner takes great care of everything else in the house but is lax on the flooring and upkeep of walls?