C5 Condition Rating

[stellasmom]

Hello: I am working on an appraisal of a vacant property which I consider to a be C5 condition rating. Furnace, electricity and heat and hot water were operable at inspection. I did not observe any safety issues. There are newer windows and roof. There is what I consider considerable deferred maintenance. All floor covering is beyond its life expectancy with most of it worn right down to the subfloor or torn/faded, kitchen counters are also significantly worn. Walls are filthy and/or damaged.... Water damage noted on some of the walls with staining evident and some area with holes in drywall. I didn't not any mold however who knows what is under drywall. Some rot noted on the exterior of the dwelling ( small area. ) I was asked to determine what it would take to classify this as a C4 condition rating. My thought is repair of rot and water damage areas as well as flooring replacement? Any thoughts on this? I have included pics for your viewing pleasure

 

[Deleted member 134708]

Since @timd354 helped with the C rating system and it is on an absolute scale. They made this problem very simple to solve. The lender can figure out what it would take to make it a C4 since this is on an absolute scale. It's not relative or up for opinion.

C4 is the same for the whole world and everyone. It is not an opinion or relative.

Just say no problem. I can make subject to C4 absolute rating. The bank should know what this is if they have the definition. Subject to C4 is all need to state. As everyone knows what this means. I can do your 1004D and with just "subject to C4 absolute rating" I will be able to figure out if it meets it.

 

[Joe Flacco]

Looks like a tear down to me.

 

[Tom Woolford]

Looks like a tear down to me.

Looks like an opportunity to me.

 

[glenn walker]

Unfortunately that bad-boy needs Rehabbed ** Hard Money Lender- Investor not going with any traditional financing.

 

[Terrel L. Shields]

You can bet that there is more damage than is obvious. Tell the client to have a contractor estimate the repair costs and you'll do it.

 

[The Bob]

Hello: I am working on an appraisal of a vacant property which I consider to a be C5 condition rating. Furnace, electricity and heat and hot water were operable at inspection. I did not observe any safety issues. There are newer windows and roof. There is what I consider considerable deferred maintenance. All floor covering is beyond its life expectancy with most of it worn right down to the subfloor or torn/faded, kitchen counters are also significantly worn. Walls are filthy and/or damaged.... Water damage noted on some of the walls with staining evident and some area with holes in drywall. I didn't not any mold however who knows what is under drywall. Some rot noted on the exterior of the dwelling ( small area. ) I was asked to determine what it would take to classify this as a C4 condition rating. My thought is repair of rot and water damage areas as well as flooring replacement? Any thoughts on this? I have included pics for your viewing pleasure View attachment 33865 View attachment 33866 View attachment 33867 View attachment 33868

I don't think you can go to C4. I do a ton of REO work and it's really difficult to go from C5 to C4, since the needed repairs would be to renovate to like new or good condition. I don't know your market, but 9 times out of 10 in my market the H&B use would be to renovate to C2/C3.

 

[timd354]

Hello: I am working on an appraisal of a vacant property which I consider to a be C5 condition rating. Furnace, electricity and heat and hot water were operable at inspection. I did not observe any safety issues. There are newer windows and roof. There is what I consider considerable deferred maintenance. All floor covering is beyond its life expectancy with most of it worn right down to the subfloor or torn/faded, kitchen counters are also significantly worn. Walls are filthy and/or damaged.... Water damage noted on some of the walls with staining evident and some area with holes in drywall. I didn't not any mold however who knows what is under drywall. Some rot noted on the exterior of the dwelling ( small area. ) I was asked to determine what it would take to classify this as a C4 condition rating. My thought is repair of rot and water damage areas as well as flooring replacement? Any thoughts on this? I have included pics for your viewing pleasure View attachment 33865 View attachment 33866 View attachment 33867 View attachment 33868

There is no chance that property is C5 as it obviously has water damage and structural damage, which makes it a C6...for chrissake you can see that the sill plate is rotted out. There is no chance that you can determine what is needed to make the property a C4 without a property inspection report being done

 

[residentialguy]

Wow...this is a C6. Here's the part where you say that a professional inspector needs to come in an do a thorough inspection and then a contractor needs to come in an bid the job. Stay away from cost to cure. They'll have the contractor bid for the exact costs. As others said, this is a rehab and the finished job will be C3...or new construction, as it might be more viable to raze and re-build.

 

[Dublin ohio]

the C rating system and it is on an absolute scale

I have to respectfully disagree. C1 maybe C2 could be considered absolute. The rest are up to some interpretation and opinion. C6 leaves a little less room for opinion. But still needs some opinion based conclusions. C3,4 &5 each have quite a bit of room for interpretation and/or opinion. The notes after each definition pretty much confirms it.