What condition rating

[Fernando]

Suppose to be absolute but condition is relative.
Such a condition would be C3 in ghetto neighborhoods.
C4 in high end neighborhoods.
Regardless, adjustments are made against comps, so in the end, the brouhaha over UAD condition doesn't really matter.

 

[J Grant]

Suppose to be absolute but condition is relative.
Such a condition would be C3 in ghetto neighborhoods.
C4 in high end neighborhoods.
Regardless, adjustments are made against comps, so in the end, the brouhaha over UAD condition doesn't really matter.

I assume you are no longer appraising.
There are instructions that the C ratings are not relative.
The adjustments are relative to differences among homes.

 

[glenn walker]

Gumps Never Appraised- He Filled Out Forms and Hit the Bulls Eye.

 

[Fernando]

I assume you are no longer appraising.
There are instructions that the C ratings are not relative.
The adjustments are relative to differences among homes.

Appraisers can be subjective choose C ratings and well at least I never been called out.
However, when I used the same comp, I forget sometimes and have to be consistent with the rating I gave.
And when I see the C rating, I can't change it. Ugh.

 

[CGinMN]

The C-1 had to start with it being brand new construction and not having been occupied by a new owner.

The extreme examples of saying what if it hadn't been sold or occupied for 3 years are rare and a buyer would take that into consideration and what physical effect it had say by weather etc.

But just like a New Car by law if it hasn't been sold and it has say less than 100 miles it's a new car. If it sat unsold for 2 year's it's still a new car but potential buyer's would deduct any effect by offering a lower price.

A New Refrigerator that's sitting for 2 years on the sales floor or in a warehouse is still a New Refrigerator but again most buyers would offer less on price. A 5 year old New Delco Water Pump for a Chevy Truck is still Brand New not used. It's only used when purchased or installed.

The same standards apply to New Real Estate it's Brand New until Sold or Fully occupied by new owners. *** if it sits through 2 heavy winters it's brand new but may result in a buyer calculating a reduction in price. That's how I see it.

So you develop your condition ratings based on whether to not an adjustment is needed, which is exactly what the GSEs say not to do. Condition ratings are objective and independent of adjustments.

 

[J Grant]

So you develop your condition ratings based on whether to not an adjustment is needed, which is exactly what the GSEs say not to do. Condition ratings are objective and independent of adjustments.

Exactly

A man is measured and found to be six feet tall. That is an objective fact.

Put him next to shorter men, and he will appear taller; put him next to taller men, and he will appear shorter. But he remains six feet tall and should be reported as such. If there were arguments made for his comparison to different heights of men, he still remains six feet .

 

[CGinMN]

Sorry I don't actually believe that, I'm just spouting the GSE narrative. Condition ratings are more akin race, not height. Its a subjective framework used to put things into categories for analysis. Not everything fits nicely, and its never objective fact.

 

[Fernando]

I have differences in C ratings when looking at property.
Thus, when I see sources of other appraisers putting a C3 in which I believe is C4, I lost faith in those third party sources.
I have MLS photos to show the discrepancies in differences in our subjective view of the condition.

 

[glenn walker]

So you develop your condition ratings based on whether to not an adjustment is needed, which is exactly what the GSEs say not to do. Condition ratings are objective and independent of adjustments.

I never said that ** I said a buyer may adjust their purchase price based on a New Home having not been sold and been sitting longer than typical. Just like a new car sitting in a sales lot for extended period, it's still Brand new but it sitting unsold is indicative it may be over priced. A C-1 is a C-1 period based on Fannies Definition.

 

[Fernando]

C1 is clear. It's C1 when new.
I had appraised this new home one time in which the owner hardly lived there. For a moment of weakness I thought C1.
Then I looked at the building inspection report and to my surprise, even when few years old there is depreciation in thousands of dollars.