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Quality And Condition Ratings

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Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
How and based on what do you base your ratings? Please consider scope of work in your answer.

Is there anything fishy involved with your actions based on scope of work?

Public trust.

No wrong answers in my questions.lol
 
Last edited:

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Quality - I reconcile four sources, cost books describe each quality class, builders RCN (exclude land & site improvements), and assessors use quality classes. See below for fourth.

Condition - Straight line depreciation. Or, modified age-life extracted from comps, using Epley method. Once you have a per year estimate as percent.. inverse is total life. 2% = 50yr, 1%= 100 yr.

http://pages.jh.edu/jrer/papers/pdf/past/vol05n01/v05p041.pdf

That's the book. "Observed" age/ condition is weak sister, but your judgment still is required.
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Please consider scope of work. What if it is a desktop or exterior only? All options are welcome based on SOW. I need these answers. Be nice.
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Ok, and what about interior condition or quality based on your scope of work?
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
Ok, and what about interior condition or quality based on your scope of work?

how do YOU determine interior quality and condition when you complete an exterior order?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
what about interior condition or quality based on your scope of work?
ow do YOU determine interior quality and condition when you complete an exterior order?
Second source. Anyone who does not determine the interior condition isn't complying with Fannie Mae requirements for filling in the 2055. I state the source, be it another appraisal, appraiser, client, or usually the agent or homeowner, in other words someone who has actually been inside the house...
Vague arm waving comparisons of "the interior is assumed similar in condition" are inadequate in my book and used only after explaining there was no second source and therefore the quality of the information is suspect and less than ideal. We may have to do that occasionally, but I would say that residential "interior" descriptions are probably much easier to obtain than interior descriptions of commercial buildings even when they are more complex interiors than say a warehouse or closed shop building. I can't tell a metal clad barn on concrete stem foundation is red iron, black iron, or wood truss if I cannot see inside...nor if it is insulated. This one is typical...do I guess it is metal frame or not? Will it make a quality difference? What's inside? insulation? electric is there, but is it lights or a welding shop? And, another question. Why does it have both propane and natural gas?

Shop on 12 (Medium).jpg
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
Second source. Anyone who does not determine the interior condition isn't complying with Fannie Mae requirements for filling in the 2055. I state the source, be it another appraisal, appraiser, client, or usually the agent or homeowner, in other words someone who has actually been inside the house...
Vague arm waving comparisons of "the interior is assumed similar in condition" are inadequate in my book and used only after explaining there was no second source and therefore the quality of the information is suspect and less than ideal. We may have to do that occasionally, but I would say that residential "interior" descriptions are probably much easier to obtain than interior descriptions of commercial buildings even when they are more complex interiors than say a warehouse or closed shop building. I can't tell a metal clad barn on concrete stem foundation is red iron, black iron, or wood truss if I cannot see inside...nor if it is insulated. This one is typical...do I guess it is metal frame or not? Will it make a quality difference? What's inside? insulation? electric is there, but is it lights or a welding shop? And, another question. Why does it have both propane and natural gas?

it wasn't a general question, it was directed specifically at eli.
 
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