C4 vs C3

[Tim Hicks (Texas)]

So, you have a 1985 house that is clean, but really no significant updates in the past 10+ years. Before, I would consider that average condition because it could use some moderization, but quite functional "as is." My problem is disassociating the old M & S condition rating of poor, fair, average, good, very good and excellent compared to the condition rating definitions for C1-5. Under the UAD definitions, the 1985 house would qualify for C3, but that is only two levels below C1 (new). It would seem that C4 is more appropriate, but then the lender would like to know about deferred maintenance or minor repairs needed. Anybody else have a tough time thinking in UAD condition speak. It seems there needs to be a C 2.5 for very good.

 

[residentialguy]

you described a clear C4, which is on par with Avg. Differed maintenance is not an issue with C4. The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. All major building components have been adequately maintained and are functionally adequate. Just explain that the flooring is used...8 years old and showing some signs of wear, which is typical of average homes.

You could state that the subject falls on the upper end of the range on a C4 rating.

I'll never been called on a C4

 

[Mr Rex]

If the property has not just been freshly painted and could stand a fresh coat, then painting has been deferred.

 

[hastalavista]

I agree with Resguy.

Its a C4 in my book.

I had a similar situation on the other side: My subject (upper end home) had been remodeled 6-years ago ($600k remodel) and expanded.
Is it a C3 or a C2?
(when I say remodeled, I mean remodeled: new addition, changed kitchen and some bath locations, redid entire main level (left the original foundation, but had to expand it due to new addition). It was effectively a new home built 2006.

I rated my subject C3 because although I didn't see any deferred maintenance, it doesn't meet the "newly remodeled/renovated" definition (at least in my book). And, I was adjusting a few of the other C3s by $150k due to the subject's superior level of quality finish and condition.

Now, one of the comps was extremely similar in terms of the main improvement's condition and quality: in all respects it was the same level of total remodel (older home rebuilt with an addition); in addition to the main improvement, they added an outside full-service kitchen and entertainment center (covered with skylights, seats about 30 comfortably). The only difference is that this remodel was started in 2009 and was complete in 2010.
C2 or C3?

 

[NorthTexValuation]

you described a clear C4, which is on par with Avg. Differed maintenance is not an issue with C4. The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. All major building components have been adequately maintained and are functionally adequate. Just explain that the flooring is used...8 years old and showing some signs of wear, which is typical of average homes.

You could state that the "subject falls on the upper end of the range" on a C4 rating.

That's a good "explanation" and I like the "subject falls...." part.

That gets you "close" to the C3.5 you really wanted to give it.

 

[residentialguy]

That's a good "explanation" and I like the "subject falls...." part.

That gets you "close" to the C3.5 you really wanted to give it.

Fact of the matter is that these are ranges. When I said that he could state that the "subject falls on the upper end of the range" did not mean in replacement of an explanation of the subject's condition, but rather in addition to so that when he adjust for inf condition on another comp which is also rated as a C4, it makes perfect sense. I didn't feel I had the need to explain it in such detail for Tim, but here you are and I confess...I didn't think that you might be reading it - my bad

 

[CANative]

Just say it's C-3 for the area.

 

[residentialguy]

The ratings are similar to M&S...it's not compared to the area but a reflection of actual condition, regardless of the surroundings

 

[Elliott]

C4

I use to make lots of age/condition adjustments based on effective age, with the UAD broad rating system, and being stiped, I find I'm making less age and condition adjustments. Unintended consequences of UAD?

 

[Tim Hicks (Texas)]

I call it C4, too. Until I got this stip from Chase:

For any property with a condition rating that is lower than C3 (i.e., for C4, C5, and C6), the appraiser needs to:
• Explain why the property has that rating;
• List the items that require repair/completion and provide an estimate of the cost to cure;
• Indicate whether the items that require repair have an impact on the property’s livability;
• Indicate whether the items that require repair have any impact on the property’s value or marketability.
• Please confirm that the items of deferred maintenance (by definition, C4 improvements “feature some minor deferred
maintenance and physical deterioration due to normal wear and tear”) will cost less than $2,000 to cure and do not affect livability, value,​

or marketability.