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Rating a property in "fair' condition.

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KJR2008

Junior Member
Joined
Jun 3, 2008
Professional Status
Certified Residential Appraiser
State
Texas
Subject property has roof damage, water stained interior ceiling tiles, damage drywall, worn carpets and floors, peeling exterior painting. Curious as to what most of you would make for a fair rating.
 
Subject property has roof damage, water stained interior ceiling tiles, damage drywall, worn carpets and floors, peeling exterior painting. Curious as to what most of you would make for a fair rating.

The condition seems quite poor. Fair is clearly too kind.
 
Last edited:
Poor...in my opinion.
 
Good Condition - No obvious maintenance required but neither is everything new. Appearance and utility are above the standard and the overall effective age will be lower than the typical property.

Average condition: Some evidence of deferred maintenance and normal obsolescence with age in that a few minor repairs are needed along with some refinishing. But with all major components still functional and contributing toward an extended life expectancy, effective age and utility is standard for like properties of its class and usage.

Fair condition (Badly worn) - Much repair needed. Many items need refinishing or overhauling, deferred maintenance obvious, inadequate building utility and services all shortening the life expectancy and increasing the effective age.


Poor Condition (Worn Out) - Repair and overhaul needed on painted surfaces, roofing, plumbing, heating, numerous functional inadequacies, substandard utilities etc. (found only in extraordinary circumstances). Excessive deferred maintenance and abuse, limited value-in-use, approaching abandonment or major reconstruction, reuse or change in occupancy is imminent. Effective age is near the end of the scale regardless of the actual chronological age.
 
I think the lender wants to know if the condition is below average market
standards. Would the typical purchaser consider it acceptable or would
they say it is below the standard of condition they would consider livable
and require improvement and replacement of the items?
 
Subject property has roof damage, water stained interior ceiling tiles, damage drywall, worn carpets and floors, peeling exterior painting. Curious as to what most of you would make for a fair rating.

I'd call it fair if its a low end neighborhood where that kind of condition is acceptable and livable to the typical buyer (or tenant...thinking that it might be an investment property). I'd call it poor if it the kind of neighborhood where the typical buyer would likely remodel before occupying the property.
 
How does the location change the condition?

The condition is the condition. In the SA the effect of the condition would likely make a difference in the market reaction, but the condition remains the same.
 
How does the location change the condition?

The condition is the condition. In the SA the effect of the condition would likely make a difference in the market reaction, but the condition remains the same.

Its not so much about the location as the expectations of the typical buyers (which follow location of course).

We've all inspected houses that are happily occupied in a condition that would earn us a divorce if we couldn't arrange better accommodations for the wife, and we've all inspected houses where the owners tore out and threw away an interior that's better than what we have in our own house when it was new. One man's junk is another man's treasure. Part of Geocompetency it is.
 
No, no, no,no, NO.

lol

You're describing market reaction to the condition rather than the actual property condition based on objective observations.
 
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