Quality UAD

[TMG]

I guess I was venting a bit. Qs will be more consistent over time, but Cs can change more often. A property that is C3 this week, could easily be C4 8 mos from now. All you need is some "good" tenants.

 

[Joe Flacco]

I think the problem is that some still think the ratings must be different in order to have an adjustment, or that a difference means there must be an adjustment. Neither of those is true. We set up a comp database to make sure ratings were consistent and only changed them if we got new information. Not that hard to do, especially if your formsware has a database feature.

I get what you are saying. I am just not sure those that are not actively appraising properties really understand the issues.

 

[Joe Flacco]

I guess I was venting a bit. Qs will be more consistent over time, but Cs can change more often. A property that is C3 this week, could easily be C4 8 mos from now. All you need is some "good" tenants.

That is not correct. The condition rating applies to the transaction. It is the condition of the property at the time it sold. The condition when it sold is the condition when it sold.

 

[Joe Flacco]

You know from a individual appraiser point of view working on a single appraisal report, the individual appraisal report making sense on it's own is more of a priority than making sure the ratings never change. I understand the rating should never change but in practice it makes sense to change. Doesn't happen very often but that is just what I observe sometimes.

 

[Joe Flacco]

But when I have decided to use a different rating the property was always described as being borderline Cx/Cy rating in the addendum in both reports.

 

[DWiley]

FTR FNMA and Freddie are working on incorporating 1/2 steps between C1-C6 So we ill see it fairly soon. I also seem to recall DW said there may even be 1/2 steps on the Q Ratings. Probably this will all be changed when they change the FNMA Series Report Formatting.

I am aware of no such effort.

 

[Dublin ohio]

IMHO. Prior to the Q ratings. Most appraisers lumped quality in with condition. So new granite counters were considered as better "condition" than new formica counters etc, etc. But on the other hand. Many appraisers did not really care about or understand quality. Which I still think is a problem today.

 

[Joe Flacco]

It is condition. Countertops do not change a quality rating. Who uses anything other than granite or any other solid surface countertops these days. There are different grades of granite and other stone surface countertops. It could be the same granite from the same rock but a different cut of the rock that costs more. Do the best you can with the ratings but making sure the ratings do not change is not all that high of the priority when working on a appraisal report.

 

[DWiley]

IMHO. Prior to the Q ratings. Most appraisers lumped quality in with condition. So new granite counters were considered as better "condition" than new formica counters etc, etc. But on the other hand. Many appraisers did not really care about or understand quality. Which I still think is a problem today.

Yes, properly categorizing condition vs quality is a challenge for some.
Quality - materials and/or workmanship
Condition - physical state

some mix the two

 

[Dublin ohio]

It is condition. Countertops do not change a quality rating. Who uses anything other than granite or any other solid surface countertops these days. There are different grades of granite and other stone surface countertops. It could be the same granite from the same rock but a different cut of the rock that costs more. Do the best you can with the ratings but making sure the ratings do not change is not all that high of the priority when working on a appraisal report.

It was an example. Get a grip. As far as who uses something other than granite or solid surface. I suppose in your high priced market. Probably nobody. But around here. You still see a lot of laminate counters in new construction and remodeling. Some are so well designed. That unless you actually examine them up close. They look just like granite or quartz. It depends on the price point of the neighborhood.