C4 Condition?

[devin]

I agree, even if the new owners typically replace the carpet or floors, the key is observing the current condition, what if there wasn't any kitchen cabinets and floors, even though most owners will upgrade their kitchens, the fact is theres currently no floors or cabinets, so why not just tell the truth and rate it for what it really is, besides the truth shouldn't hurt, well at least not you, don't know about the lender or AMC, lol, remember "The Truth Shall Set You Free", if they cared anything about you as an appraiser, they shouldn't have a problem with that, good luck, do the right thing, protect your hard earned license like it's gold

 

[J Grant]

Based on this one photo alone, I would go with C4 and missing carpet, (unless there is evidence of water damage that needs repair). I can't tell from the photo what the discloration is along ceiling, other than that it is C 4 with no carpet, teh walls look smooth like they have been patched and repaired, so where is the C5? Not having carpet does not make a property C5. There are brand new houses, some over a million dollars, delivered in C1 condition to buyer with no carpet, it's called "decorator ready", so buyer can put in their own carpet or tile or wood etc.

A few missing/cracked tiles is a minor repair issue and could still be C4. A major issue of cracked/missing tiles esp with water damage or settling causing it, that's C 5. Read the definitions again what applies predominantly to this property. C4 says only minimal repairs needed, C5 says significant repairs needed.

Does replacing some loose and chipped tile and repairing a stained area on ceiling constitute significant repair? Imo that is minimal repair (significant repair would be replacing roof or major roof repair, for example)

 

[HF Mudd]

For me the key for C5 - is it in need of "significant repairs"? If yes, then C5. If no, then C4 (on the low end).

 

[Leon Marcus]

you are doing is advocating for the client.

C5 "The functional utility and overall livability are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence."

The picture I posted is exactly what is described as a C5 from Fannie .

 

[Leon Marcus]

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.

C5:
The functional utility and overall livability are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.

 

[Leon Marcus]

C5
The functional utility and overall livability are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.

How does this not describe the picture I posted.
In my opinion, saying c4 is playing games to please the client and get it closed.
C4 represents average overall, what kind of your do you people live in if you view this as average.
Based on what the reviewer said, I guess I am alone.
So the person that allows the place to get like that is very good at maintaining EVERYTHING else he/she just kind of slipped on the flooring and general upkeep of the walls? No, they treated the entire property the same way.

 

[J Grant]

Why did you only post a portion of C5? The entire C5 references significant repairs. C 4 can have some deferred maintenance and needs limited repair.

It's not about pleasing a client/fudging a condition, its about most accurately assesing what the total of condition is ( including if the total is impacted by one specific area that may need major repair, if that is the case)

 

[J Grant]

C4 - Some minor deferred maint. & physical deterioration from normal wear & tear. Adequate overall maint., requiring minimal repairs to components; needs some cosmetic repairs.

Components functionally adequate. C5 - Obvious deferred maint.; in need of significant repairs, rehab or updating. Functional utility & livability diminished but dwelling remains useable & functional.

 

[GeorgetownAP]

And, that's why these ratings (both quality and condition) are, IMHO, fall far short of the desired results Fannie desired. I get they wanted uniformity, blah blah -- but, even with definitions provided - it is the appraiser who determines the appropriate rating to determine an opinion of value - and we can't even decide on what is what... (is it a C3 with adjustments down or a C4 with adjustments up etc etc). You say tomato and I say tomahto. The choice is still somewhat subjective --- and, of course, what we are judged on via CU (and scorecards, etc)..... I'm sorry, Fannie, but even after all this time under the UAD rules, there is STILL no consensus on these rating assignments, and thus your BIG DATA is going to be flawed. How many times in a report do we, as appraisers, assign the rating - and then explain the heck out it when the rating could have gone either way, which is what we should do (justify, document and narrate) and still get slapped.

 

[chad hampton]

If the rest of the home was decent/average, I'd call it a C4.

If the roof and mechanicals were 25 years old, kitchen was in below average shape, vanities missing, tubs cracked, holes in drywall, etc, then I'd go with a C5 overall rating.

IMO, needing a new paint job and carpet in 2 small bedrooms isn't enough to make it a C5. But these ratings are judgment.