Condition Adjustment in same designation

[bnmappraisal]

Personally, I prefer to make an "Upgrades/Extras (Updates)" line adjustment at the bottom of the 1004 SCA grid

The subject and all comps may be "C3" ... but then I adjust under the above stated

I also add comments, though, explaining the adjustment (or lack thereof)

 

[mike32716]

Property Condition and Quality of Construction of the Improvements | Fannie Mae

This topic contains information on property condition and quality of construction, including:

www.fanniemae.com

 

[Dublin ohio]

I'd like to see it too. I think Mr Tom i misinformed. Tom, show me.

I do believe TomD may be referring to an article in the latest Working RE by Richard Haga titles "Quality, Upgrades and Effective Age". Although he does state what TOMD said. Hagar does not cite any specific fannie source for his opinion

 

[TRESinc]

I was wondering how everyone is handling condition adjustments within the same Rating? For example, a property in C4 condition that is closer to C3 than C5. Can you do an adjustment if they are in the same rating?

you may want to have a talk with your mentor. this has been the way since UAD started around what, 7-9 years ago or so? better yet seek out a competent appriaser in your neck of the woods and spend a few hours, or a day or two, talking with them. if this was how you were trained there may be other areas that you received false/misinformation with regard to your training and you could be making mistakes without even knowing it.

 

[Mike Kennedy]

Thanks, am familiar with it, though it does not indicate what Tom D said:
Tom D-according to fannie mae that is the correct way to do it. if you put it on separate line CU doesn't recognize it. as a matter of fact fannie mae news letter last week discussed how some appraisers were dong it wrong. ?? Where is that...

Since some appraisers make the adjustment instead of on the C rating line, might put it line item under upgrades or other.

Imo, fannie needs to add a plus or minus option to the ratings

No need for + or -

"

C3

The improvements are well-maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well-maintained. Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is being well– maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation.

C4

The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate. Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however, they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property.

 

[glenn walker]

I was wondering how everyone is handling condition adjustments within the same Rating? For example, a property in C4 condition that is closer to C3 than C5. Can you do an adjustment if they are in the same rating?

YES-

 

[Overimprovement]

In my area, 90% of my reports are C3 or C4. 80% of the homes are Q4 or Q5. Without some granularity within Q and C ratings, that would mean almost no adjustments for quality and condition for many of my reports. Here is why (obviously summarizing here: C1 is limited to new builds (not lived in), C2 is basically still looks and smells new. C5 is some decent repairs needed, and C6 is don't even come in without body armor and a mask. That leaves two condition ratings for a large swath of houses.

How would it be it there were only two possible site size or garage choices? Two location choices (rural/urban)? You get the idea. IMHO, I think we are doing a dis-service to our clients if we are not addressing C, Q, and locational differences in our reports--or at least stating they are similar enough to not warrant adjustments. I think doing it on the line you are discussing is the right treatment, my only proof of that is never having had a revision request when I clearly state what the adjustments are, where the support is coming from, and placing on the C and Q lines in the grid.

 

[Salty]

You can do anything you want in a report as long as it is properly explained. ANYTHING. Its just a form. The real appraisal is the addendum. I for one don't pay too much attention to Cs and Qs and all that silliness anymore. I provide a somewhat detailed description of each comp and explain why/what I adjusted for. I include my adjustment tables as well. (pairs, groups, etc...). eff the C's & Q's.

That new feature in TOTAL that pulls up others' comps is sooo funny. Many times I see 5 versions of the same comp with varying ratings of C's and Q's. Its all a joke.

 

[Mejappz]

All they have to do is allow for a rating in between. For example, a property that is in between a C3 and C4 would receive a 3.5 rating.

 

[Amy Perkins]

I was wondering how everyone is handling condition adjustments within the same Rating? For example, a property in C4 condition that is closer to C3 than C5. Can you do an adjustment if they are in the same rating?

Absolutely, and I often will make adjustments with the same rating. When I had my own description of condition, this did not happen. Not all C3's are created equal.