What's the difference between a C5 and C6?

[Elliott]

I'm pretty much a C3 kind of guy. Occasionally a C4. I have a 3000 sf rat infested push over. Is it C5 or C6, or should we spend $80,000 of Fannie's money and make it into a C3? What is that tipping point out on the end of that bell shaped curve?

 

[G-man]

As I read the UAD requirements, a C-5 home is well worn, with most original fixtures, mechanical systems and cosmetics still in place, but are in usable condition. A C-6 home is not habitable in its current state, and requires significant repairs/restoration in order to bring it up to market acceptable, not necessarily renovated, condition. A C-6 home is what you are describing, I think.

 

[Pam Wyant]

C-5 needs significant repairs but is habitable. C-6 is not habitable.

 

[Rich Heyn]

The C-1 through C-5 ratings are holistic. C-6 is not. If a dwelling has issues of safety, soundness or structural integrity, then it's a C-6 regardless of general condition. If a dwelling does not have issues of safety, soundness, or structural integrity, it's not a C-6 no matter how poor the condition. In other words, C-6 is not simply a dwelling that's worse than a C-5.

Let's say that a dwelling is brand new, never been occupied. But somehow the railing on the second-floor balcony was never installed. It's unsafe and therefore a C-6. Envision a two-year old dwelling that the DIY owner never got around to putting up the siding on the rear exterior wall. It's unsound and a C-6.

Now envision a dwelling that is in horrible condition, but there is nothing unsafe or unsound about it, and there are no issues of structural integrity. It's a C-5 and never devolves to C-6 so long as there are no issues of safety, soundness or structural integrity.

 

[TRESinc]

Let's say that a dwelling is brand new, never been occupied. But somehow the railing on the second-floor balcony was never installed. It's unsafe and therefore a C-6. Envision a two-year old dwelling that the DIY owner never got around to putting up the siding on the rear exterior wall. It's unsound and a C-6.

one missing railing on a new construction and you call it a C6? that sounds like a stretch and a half. a missing railing is not deferred maintenance or substantial damage, which is exactly what C6 states - The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.

could the missing railing be a safety issue? definitely. is it a safety issue as a result of deferred maintenance? absolutely not. the key is that the definition specifically states the bolded above.

 

[JTip]

I'm pretty much a C3 kind of guy. Occasionally a C4.

Must be a beautiful market you reside in.

90% of my area is C4, working man's town.

 

[Rich Heyn]

one missing railing on a new construction and you call it a C6? that sounds like a stretch and a half. a missing railing is not deferred maintenance or substantial damage, which is exactly what C6 states - The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.

could the missing railing be a safety issue? definitely. is it a safety issue as a result of deferred maintenance? absolutely not. the key is that the definition specifically states the bolded above.

Deferred maintenance refers to items that should be corrected immediately and does not necessarily suggest inadequate past maintenance. A missing rail on a second-story balcony is a deficiency and it is a safety issue. Consequently, it's a C6.

 

[TRESinc]

Deferred maintenance refers to items that should be corrected immediately and does not necessarily suggest inadequate past maintenance. A missing rail on a second-story balcony is a deficiency and it is a safety issue. Consequently, it's a C6.

Deferred maintenance is the practice of postponing maintenance activities such as repairs on real property. What you states (missing rail) is incomplete construction, not deferred maintenance. In your case the property should be a C1 with a subject-to value for installing the missing rail. calling it a C6 is just ridiculous.

 

[Terrel L. Shields]

Nobody answers the hard questions. What is the difference between chow-chow, pickle relish, and piccalilli?

That's my take on the various "cubby holes" under CU...which begs the question what is the difference in C1 - C6 and excellent, good, average, fair, and poor. All descriptive judgments of the appraiser.

 

[Rich Heyn]

Deferred maintenance is the practice of postponing maintenance activities such as repairs on real property. What you states (missing rail) is incomplete construction, not deferred maintenance. In your case the property should be a C1 with a subject-to value for installing the missing rail. calling it a C6 is just ridiculous.

I don't know where your definition of deferred maintenance came from, but it's substantially different than the definition in the Dictionary of Real Estate Appraisal.