Freddie Mac: Quality & Condition Ratings

[J Grant]

The AI software for Q and C ratings for UAD is better suited for AVM's-

 

[RCA]

The AI software for Q and C ratings for UAD is better suited for AVM's-

I essentially use percentage worse, from 0.00%-100.00%. The accuracy is needed in the lower and higher ranges of quality where the value/% curve can get very steep downwards or upwards. And I can get market reaction to ultra low and ultra high condition/quality rankings like no other method can.

 

[Digger88]

The ratings I came up with are Q2 = custom, typically new construction here Q3 = brick/hardie/stone Q4 = siding then I explain it in the addendum. C1 = new, C2 = 1-2 years old and C3 = 3 to 40ish. A typical home here is C4 if built in the 70s or older that hasn't been remodeled. At the bottom of the grid in an empty data field I make upgrade adjustments after looking at interior pics on MLS. It's kind of shocking how many appraisers don't look at comp's interior pics. In Total I will also look at Smart Exchange to see what my peers are doing where I frequently see missed items or mistakes. The listing for this particular comp says interior townhouse in reality it's a new construction end unit but 2 or 3 appraisers still marked it interior. Rear decks/patios/porches even a pool was missing on some peers grids I looked at on this exchange a few days ago.

 

[TerryRohrer]

How do you derive/measure upgrade adjustments?

 

[Digger88]

I use no upgrades, avg upgrades, updated, renovated, remodeled and premium upgrade for new construction then sensitivity to derive the adjustments. I may make condition only adjustments if the property is in bad condition then none below or vise versa.

 

[Digger88]

I put this in my reports and reference which method I use