C4 vs C5 condition rating

[cashcatz]

Came in thinking this was a Corvette thread, a little disappointed.

 

[Airstream]

I have noticed that on many MLS sheets in Wisconsin, the agents included finished basements in the square footage of the house (GLA). That is Sooooooo annoying! When I'm looking at a picture of a 1400 sf ranch that says it's 2400 sf, I'm thinkin', "Where the heck is the rest of it?" It is so misleading. I know many Wisconsinites spend lots of time in their finished basements, but if I'm looking for a house there (which I sorta WAS), I want to know how much of the square footage is above grade.

And you know that the quality of the 'finished basements' ranges from painted (or not) walls, painted floor, dropped ceiling and dehumidifiers, to drywalled walls & ceilings, LVP or carpeted floors with actual cabinetry and a bathroom you wouldn't mind taking your clothes off for. A sad ugly finished basement is not going to bring in more $$$ IMO, and might even detract from value, as a Buyer might be repulsed by the fake 'wood' paneling, asbestos floor tiles, cheesy bar, ductwork ceiling and orange decor. (Sorry, I was just having a flashback)

MLS data is typically BS. Just did an appraisal of a sale of a waterfront house. MLS--Above grade: 2,649sf. Reality: 2002sf. MLS--Below grade finished: 1500sf Reality: 500sf. The very issue you talked about regarding finished basements in the MLS is exactly correct. The agent saw painted walls (cement) and painted floor (cement), and marked it finished. I run across this all the time. Needless to say I wrote a scathing email to the MLS about when is this going to stop. This was so egregious. But I've actually had worse!!

The MLS I use does separate them out. But you are right that some MLS's are deceptive. But if you look on the MLS sheets they do separate them out. The problem is that buyers can't read MLS sheets. I have called out agents on this so often, and all I get is blowback. It just never stops. Until someone gets sued in court, I don't think agents will change.

The irony: GSE's want us to measure to the nearest inch. So ridiculous. I would just be happy of agents actually did their jobs and correctly represented the property.

I have noticed that some agents are now using Cubicassa to measure a house. I can live with that. They still need to be educated on what is and what is not finished in the basement.

 

[J Grant]

MLS data is typically BS. Just did an appraisal of a sale of a waterfront house. MLS--Above grade: 2,649sf. Reality: 2002sf. MLS--Below grade finished: 1500sf Reality: 500sf. The very issue you talked about regarding finished basements in the MLS is exactly correct. The agent saw painted walls (cement) and painted floor (cement), and marked it finished. I run across this all the time. Needless to say I wrote a scathing email to the MLS about when is this going to stop. This was so egregious. But I've actually had worse!!

The MLS I use does separate them out. But you are right that some MLS's are deceptive. But if you look on the MLS sheets they do separate them out. The problem is that buyers can't read MLS sheets. I have called out agents on this so often, and all I get is blowback. It just never stops. Until someone gets sued in court, I don't think agents will change.

The irony: GSE's want us to measure to the nearest inch. So ridiculous. I would just be happy of agents actually did their jobs and correctly represented the property.

I have noticed that some agents are now using Cubicassa to measure a house. I can live with that. They still need to be educated on what is and what is not finished in the basement.

I would just be happy of agents actually did their jobs and correctly represented the property.

Correctly representing the property is not the agent's job - Their job is to sell the property ( and get the best price for the seller). There was a court case about agents' exaggerations about property, and the ruling was FOR the agents- it is called "puffery" or "puffing" (a legal term). They won the case because puffery is legal in advertising, and sales agents are using MLS to advertise the properties.

It is because agents ( and others) can misrepresent properties that we have a job - just for perspective!

Now RE agents do have to be correct about certain things - age of property, other facts. The agents typically avoid measuring so they can not be charged with lying about the size - many MLS listings state public records were relied on ( of course the agents get the breakouts wrong on public records, such they might add a basement or garage to the total sf )

Casi Cuba is a floor plan, not necessarily a measured representation - which is perhaps why agents are using it. Some agents may not do their own Cubi Casa floor plan; they might hire someone to do it so that the agent can avoid liability. I used to be a RE agent back in the day. The first thing the broker told all new agents was, -"Do not measure the house. If you do not measure it, the buyer can not accuse you of misrepresenting its size."

Puffing vs Misrepresentation In Real Estate - Difference

Puffing is a marketing strategy used by real estate agents to exaggerate the benefits or features of a property. Misrepresentation in real estate, on the other hand, involves making false statements or providing misleading information about a property.

schorr-law.com

 

[Functional Obs]

I am appraising a property that had some significant water damage in the basement. The basement was finished. It is missing flooring, drywall about two feet up from the floor, ceiling tiles, etc. The issue has been remedied, however the basement has not been repaired. The first floor of the dwelling is fully functional. This lender will lend on a C5 rating if done subject to repairs. What would you consider the minimum to bring it up to a C4 rating? TIA

I think of C5 like camping...

 

[sputnam]

I am appraising a property that had some significant water damage in the basement. The basement was finished. It is missing flooring, drywall about two feet up from the floor, ceiling tiles, etc. The issue has been remedied, however the basement has not been repaired. The first floor of the dwelling is fully functional. This lender will lend on a C5 rating if done subject to repairs. What would you consider the minimum to bring it up to a C4 rating? TIA

Read the definitions of the Cs and decide for yourself which fits the subject property best. No one in the forum can really give you an opinion of the subject's condition since, we haven't seen the property.

 

[WilliamJaxon]

From a mold remediation standpoint, the key question is whether the damaged drywall was removed or just dried in place – residual moisture in drywall often leads to mold growth even after the source is fixed. If there is any visible staining or musty odor, documenting it carefully makes sense, since mold affects both livability and marketability. A qualified mold inspection report can give the lender confidence that the issue is truly resolved.