C5 Or C4 Condition Rating

[timindp]

I am in process of completing an SFR appraisal for a conventional loan, re-fi.
The home is a single story dwelling 4 bed 2 bath but extremely dirty within the interior. Personal items all over the dwelling, borderline unhealthy. I noted exposed wires coming from ceiling and labeled the home as a C5. Condition from lender, Please provide a comment regarding the below average or inferior condition of the property and explain what is necessary to bring the rating to C4 or higher.
I already explained the condition of the subject and elaborated on the inferior condition, (aka pak rat/messy) in other words. If the exposed wires are to be remedied properly, would this home then be considered a C4 being that there was no other damage or dificiences noted to the property other than dirty carpet and junk?

 

[Mike Kennedy]

aside from the Hoarder/PackRat's personal items easily cleaned out in a day possibly 2 ,,

"extremely dirty" means_________________>> thorough cosmetic cleaning, repainting, refinishing floors, etc. or cleaning and replacement of flooring, walls, counters etc?

Exposed wires from 1 or more holes in the ceiling or a missing light fixture?

Attempting to help you develop an opinion of cosmetic cost to cure or more substantial cure necessary to property address the Clients concern?

Suggest revisiting your field notes and photos and go ROOM by ROOM identifying the above, the nature/character of the deferred maintenance (cosmetic or structural, health & safety etc). the two column results should help u answer your posted question.

opinion: that expanded analysis IMO should have been in the report along with estimated cost to cure (if applicable) to support your stated overall effective age and condition opinions in the completed report.

Based on the client's request, I suggest you add the apparently omitted analysis, then thank the Client for the opportunity.

 

[bnmappraisal]

When I run into similar situations (and I have many times) I try to "take a step back" and look at the overall picture; try to imagine the place as vacant with no occupant. This helps me stay objective, at least for me. I then ask myself, "what would the avg person do to make this 'average' if they moved in tomorrow." I can imagine what you describe; "personal items all over the dwelling, borderline unhealthy." But I also would counter, if those items are removed, what is the condition of the house?

You mention the exposed wiring. Were there any other issues (non personal that someone can/would take with them if they moved) that are affecting the condition of the house? (i.e. holes in the walls, roof leak(s), broken window(s), etc)

Obviously you have seen the property and it falls to your judgment, but if it's only b/c of the wiring, I'd probably call it C4 ... if there are other issues prevalent, then I'd lean toward C5. Either way, I'd explain what you see/saw and provide pics if possible

 

[Michigan CG]

.........The home is a single story dwelling 4 bed 2 bath but extremely dirty within the interior. Personal items all over the dwelling, borderline unhealthy. ..............

I inspected the same home yesterday for an FHA purchase. The home needs about $50,000 in love. I am shocked that the Realtors involved would actually try to get this past FHA.

 

[Tom D]

i see this maybe every other week. clutter can be considered a safety hazard. for seniors on the reverse mortgage i have made them unclutter some areas. one house the lady thanked me for making her do it, well, the contractor's crew did it. she was finally able to get control of moving around & keeping the house clean. c4 with the wiring being fixed, i guess an electrical cert. FHA only considers items past their economic life, not how ugly it looks.

 

[Deleted member 130081]

We appraise "as vacant", so anything that is not a fixture is irrelevant. List what needs to be done to meet the UAD definition of C4 and you're done.

 

[glenn walker]

C-4 Subject to repairs or required inspections completed by a licensed contractor . Hell I have been living in cluttered houses for years .The wiring issue call for a licensed contractor to inspect and mitigate any issues that are not correct and be done A C-5 or C-6 is really almost a tear-down : )

 

[Pete Humphrey]

They are asking you for this because fannie won't lend on a C5. Besides the clutter, which everyone else has address and which is just stuff that can be removed with the house cleaned, you need to ask yourself are the repairs required "significant" as defined by C5, or minor/cosmetic as defined by C4. I would say that if your only repair is an exposed wire, you have minimal repairs. If you have siding that's falling off, holes in the roof, a furnace that's not working, broken windows.....etc......these are "significant" repairs. I hate the C ratings and really miss the old days of Good, Average, Fair........etc. Very rarely does a property fit into one of the C boxes perfectly which is why I take the time to write additional commentary about the quality and condition. Sounds like you are going to need to do that on this one! Good luck!

 

[CANative]

I inspected the same home yesterday for an FHA purchase. The home needs about $50,000 in love. I am shocked that the Realtors involved would actually try to get this past FHA.

FHA does not require good housekeeping.