Fair Condition vs Average Condition Rating

[Rich Heyn]

Fannie and Freddie will soon (before the end of the year, they say) be publishing information on the Uniform Appraisal Dataset, which will involve standardized responses. Quality rating will be expressed as Q1 through Q6 and condition rating as C1 through C6.

So in FannieFreddieWorld, no more poor, fair, average or any of that stuff. Implementation sometime next year.

 

[CANative]

Fannie and Freddie will soon (before the end of the year, they say) be publishing information on the Uniform Appraisal Dataset, which will involve standardized responses. Quality rating will be expressed as Q1 through Q6 and condition rating as C1 through C6.

So in FannieFreddieWorld, no more poor, fair, average or any of that stuff. Implementation sometime next year.

Do these ratings come with pre-printed descriptions and/or definitions?

 

[Calvin the Airedale]

Fannie and Freddie will soon (before the end of the year, they say) be publishing information on the Uniform Appraisal Dataset, which will involve standardized responses. Quality rating will be expressed as Q1 through Q6 and condition rating as C1 through C6.

So in FannieFreddieWorld, no more poor, fair, average or any of that stuff. Implementation sometime next year.

In an effort to make reports even more inscrutable than Mandarin Chinese, I intend to populate my reports with as many abbreviated dataset responses as the forms can accommodate, along with little translation.

The effect should be to drive ever more of the public to the Forum and hopefully reduce the annual cost of the add free version.

In terms of condition, it would be nice of the industry could tie the definitions to some margin of cost for deferred maintenance, repair of upkeep. A %, if you will, of the margin of value or price needed to produce an excellent rating. Excellent, for instance would have a zero tolerance, meaning no $ need be spent to produce the best condition rating. Very good might be 5% or less, and so on.

 

[CANative]

In an effort to make reports even more inscrutable than Mandarin Chinese, I intend to populate my reports with as many abbreviated dataset responses as the forms can accommodate, along with little translation.

The effect should be to drive ever more of the public to the Forum and hopefully reduce the annual cost of the add free version.

In terms of condition, it would be nice of the industry could tie the definitions to some margin of cost for deferred maintenance, repair of upkeep. A %, if you will, of the margin of value or price needed to produce an excellent rating. Excellent, for instance would have a zero tolerance, meaning no $ need be spent to produce the best condition rating. Very good might be 5% or less, and so on.

I believe the M&S descriptions I posted are for purposes of establishing efffective age. So wouldn't that include a consideration of cost and %? I think Rich said something at the annual conference about how these quality and condition ratings would work in the adjustment process. I can't remember and I didn't take good notes.

 

[Tim Hicks (Texas)]

They are working with software providers to make a drop down list for their acceptable descriptions for condition and quality. They want standardized reference points and no more average - or average --, or avg/repairs, etc. Why can't appraisers just tell the truth? If it is fair, it is fair. If it is poor, it is poor. It should be black and white, not the way most appraisers have been trained.

 

[CANative]

Residential appraisers have gotten hammered for years by brokers and lenders who pressure them to remove the "F" word.

 

[Mr Rex]

Residential appraisers have gotten hammered for years by brokers and lenders who pressure them to remove the "F" word.

F them and the horse (or who ughres) they rode in on.:icon_idea:

 

[Calvin the Airedale]

I believe the M&S descriptions I posted are for purposes of establishing efffective age. So wouldn't that include a consideration of cost and %? I think Rich said something at the annual conference about how these quality and condition ratings would work in the adjustment process. I can't remember and I didn't take good notes.

That's the implication, but delivered in the context of cost. The margins I speak of would apply to comparison approach condition adjustment category and might be expressed as a % of SP of the comp.

The descriptions as apply to the cost approach apply only to the depreciable improvements.

 

[Calvin the Airedale]

F them and the horse (or who ughres) they rode in on.:icon_idea:

Are you on some sort of double secret probation. I notice your post does not make the message board as the most recent post in this thread?

 

[Mr Rex]

Are you on some sort of double secret probation. I notice your post does not make the message board as the most recent post in this thread?

Always. Its a conspiracy by the mods who are under mind control by a few lenders too big to fail and too big to advertise here, but they have subsidiaries...