Good, Average, Fair, Poor

[Tony in Ohio]

I would say the answer is the offical appraisers response. "it depends".


I have never seen it in writing, and it apparently no one else has, but we have all heard it.

My guess is that its an unwritten rule and the underwriters kill most of them, but given the right circumstances (Low LTV, buyer with great scores, buyer proven track reckord with rehabs, etc.) to make the underwriter feel safe and secure, and it will go through with a wink. Just look at how many people say below average or average (-) that have no problem.

 

[Thomas N. Morgan]

The problem lies with the form itself. There are four ratings here. There is no middle ground. Also, these four words do not lie along the same continuum. Good, Fair and Poor ARE on the same continuum. Average is odd man out. Good, Fair & Poor are SUBJECTIVE ratings. AVERAGE is a mathematical or statistical concept. It is out of place.

Condition definitions in the NADA Book on mfg. homes might be of interest.

"Excellent: Home is new and/or like new, vary attractive and highly desireable.

Good: Normal wear and tear visible, but home is well maintained, still attractive, desirable and useful.

Average: Without inspecting the home, assumed to be a marketable product, being of no specified condition. (Average retail book value)

Fair: Minor deterioration apparent due to both the climate and the deferred maintenance., less attractive but obviously useful.

Poor: Signs of structural deterioration obvious, missing or broken components, definitely undersirable and marginally useful."

Thomas N. Morgan
Ocala, FL

 

[Frederick R. Ruffell]

Tom,
I think I might adopt this into my addendum. Thanks, it confirms what I have been doing all along.