Appeal is not the same thing as condition. Appeal speaks to style and trends ( and normally, newer materials are more in trend ). However, an ugly or unpopular color choice of cabinets can be newer or in very good C3 condition.
It is true that the condition ratings do not determine the value of properties. The value is developed by the appraiser in the adjustments and reconciliation that accounts for the whole of the parts. A C4 property in a high-demand location or with a great view can sell for more than a same-size C4 property close by. Trends come and go and are more critical in high-value properties. Every appraisal is different and relying on a computer to scan photos for condition or appeal - seems a person can do that, but either way, the price and the value reflect the entire property, and its features and defects (if any).
You are saying that homes that are in better condition don't have more appeal than homes in poorer condition. But that clearly isn't true, generally speaking. Take a home that was designed by Frank Lloyd Wright, but is now completely run down and in poor condition, with mold growing in many places, termite damage, and so on. Where is your "appeal?" No, "Appeal" is a general description of how much a buyer is drawn to a particular property or property component.
So, you are wrong.
Grok, which parses the entire world of documents and writings, confirms the meaning and use of appeal. It is the expert here:
"Appeal in real estate unequivocally encompasses condition, quality of construction, functional utility, and design, as these elements collectively shape a home’s desirability, marketability, and value. Each contributes to the aesthetic, functional, emotional, and economic dimensions of appeal, influencing how buyers perceive and prioritize a property. A home that excels in these areas is more likely to attract interest, command a premium price, and sell quickly. If you seek further clarification or wish to explore how these factors apply to a specific property or market, please provide additional details, and I can offer a tailored analysis."
The features described by the concept of "Appeal" are not objectively and directly measurable. The Residual, however, is a rather precise, although indirect measurement of Appeal, which is the difference between what someone pays for a home (assuming it is an arms-length transaction with full knowledge) and the estimate of its price based on its measurable features, where we are excluding measurable features from the concept of "Appeal." [ Note: Yes, a large GLA home may have more appeal than a small GLA home, all other things being equal. But a run-down large GLA home, may very well have less appeal than a very nice small GLA home. So, GLA is not a deciding factor in what most people consider "Appeal." ]
