For example there are a total of six Property Condition Rating Codes:
- C1 - New Property
- C2 - No deferred maintenance, little or no physical depreciation & recent updates
- C3 - Well Maintained, with normal wear and tear and, perhaps, some updates
- C4 - Minor deferred maintenance requiring only minimal repairs
- C5 - In need of significant repairs
- C6 - Substantial damages or significant need of major repairs
What does C5 mean on a home appraisal?
Homes appraised as being in condition C4, C5 or C6 have repair issues requiring significant attention. A home appraisal's URAR form also has an "additional comments" section for an appraiser to discuss what's been found.
What is a C6 condition rating on an appraisal?
Appraisers are required to use the C1 to C6 condition rating system and can also leave comments to support their ratings. For example, a home not in good condition might be rated as C6 with a comment such as "extensive plumbing and electrical repair needed" entered on the appraisal form.
What is the difference between a C4 and C5 property condition rating?
The difference between between a C4 and C5 also plays a HUGE role in whether the property will be able to obtain financing or not. A property with a Property Condition Rating of C5 or C6 might not be able to qualify for financing unless there are extensive repairs/improvements done to the property, or the financing is with a 203K Rehab Loan.
What does C3 mean on a home appraisal?
Generally, homes appraised as being in condition C1, C2 or C3 have few, if any, repair issues. Homes appraised as being in condition C4, C5 or C6 have repair issues requiring significant attention. A home appraisal's URAR form also has an "additional comments" section for an appraiser to discuss what's been found.
What are the C ratings on an appraisal?
Generally, homes appraised as being in condition C1, C2 or C3 have few, if any, repair issues. Homes appraised as being in condition C4, C5 or C6 have repair issues requiring significant attention.
What does C6 mean on an appraisal?
C6. 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.
What is Q5 condition on an appraisal?
Q5. Dwellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a plain design using readily available or basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation and limited interior detail.
What is a C4 condition rating?
A property in C4 condition has been adequately maintained and requires only minimal repairs to building components and/or cosmetic repairs. This means that all major building components (foundation, roof, central HVAC, etc.) have been adequately maintained and are functioning as intended.
What does C1 mean on an appraisal?
Condition Ratings and Definitions C1. The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features. no physical depreciation.
Will Fannie Mae accept a C5 appraisal?
It is important to note that loans secured by properties with C5 condition ratings are deliverable to Fannie Mae with “as-is” reports, provided the property meets the following C5 definition: “The improvements feature obvious deferred maintenance and are in need of some significant repairs.
What does Q2 mean on appraisal?
high-quality houseQ2: A Q2 dwelling is still a high-quality house. This type of house is typically custom-designed for an owner's site, but could be found in a high-quality tract development. In some locations where there are no Q1 houses, a Q2 dwelling might represent the best quality house in the area.
What is a P1 appraisal?
P1 is the price of the more expensize property. P2 is the price of the cheaper property.
What does quality Q3 mean on an appraisal?
Good Quality RatingQ3 or Good Quality Rating From there you go down to Good Quality, or Q3, which would be in a subdivision - sometimes built on an individual lot, but also of good quality materials.
Do appraisals take repairs into consideration?
Why would appraisers require repairs? Although home appraisals primarily function as a way to determine the market value of a property, they can also include recommendations for repairs that a seller will have to fix in order for the buyer's financing to go through.
What does a C6 rating mean?
However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.
What is C2 improvement?
C2. The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with components that meet current standards.
Is the estimated effective age of a building close to or equal to its actual age?
Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however, they still function adequately.
Is a dwelling adequately maintained?
The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate. Note: The estimated effective age may be close to or equal to its actual age.
What is a property condition rating code?
In order to obtain financing on a property the property HAS to be in livable condition. A property with a Property Condition Rating Code between C1 & C4 is considered livable condition. A property with a Property Condition Rating Code of C5 or C6 is not considered in livable condition in its present condition.
Where is the condition rating code located?
The Property Condition Rating Code, is a single letter, single number code located in the bottom section "Improvements Section", of the first page of the Uniform Residential Appraisal Report.
What happens if an appraiser is not qualified to evaluate the alterations or repairs needed?
If the appraiser is not qualified to evaluate the alterations or repairs needed, the appraisal must identify and describe the deficiencies and the property must be appraised subject to a satisfactory inspection by a qualified professional. The appraisal may have to be revised based upon the results of the inspection.
What should an appraiser select?
The appraiser should select the rating that best reflects the property as a whole and in its entirety. describe the subject property as of the effective date of the appraisal on an absolute basis, meaning the property must be rated on its own merits.
What is the purpose of appraisal report?
The appraisal report must identify and describe physical deficiencies that could affect a property’s safety, soundness, or structural integrity. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations. In these instances, the property condition and quality ratings must reflect the condition and quality of the property based on the hypothetical condition that the repairs or alterations have been completed.
What is Q6 rating?
However, the Q6 Rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property.
What is condition and quality rating?
The Condition and Quality ratings must be based on a holistic view of the property and any improvements. When selecting the Condition and Quality ratings, an appraiser must. consider all improvements to determine an overall Condition and Quality rating. The appraiser should select the rating that best reflects the property as a whole ...
What does "infestation" mean in an appraisal?
Infestation, Dampness, or Settlement. If the appraisal indicates evidence of wood-boring insects, dampness, or abnormal settlement, the appraisal must comment on the effect on the value and marketability of the subject property.
Does a comparable appraisal change?
When a comparable is used in a subsequent appraisal, the ratings and descriptions of that property should not change from one appraisal to the next when it reflects the same sale transaction.
What does a certified home appraiser do?
Licensed and certified property appraisers examine the overall state of homes along with their ages and how they compare to similar recently sold properties. A professional home appraisal isn't a home inspection, and appraisers look only for readily observable issues. If you're concerned about whether or not a home's systems are in good condition, ...
What does a home appraiser rate?
Regardless of the reason, all home appraisers rate the conditions of properties using various formulas. A home appraiser might also rate a property in such a way that makes it apparent the house isn't in good condition.
What is URAR on a home appraisal?
A home appraisal's URAR form also has an "additional comments" section for an appraiser to discuss what's been found. Appraisers are required to use the C1 to C6 condition rating system and can also leave comments to support their ratings. For example, a home not in good condition might be rated as C6 with a comment such as "extensive plumbing and electrical repair needed" entered on the appraisal form. A URAR's condition rating and the comments of the appraiser make an appraised home's condition apparent.
What is a licensed appraiser?
Licensed and certified real estate appraisers generate valuations of houses and other properties for a variety of reasons. Some home appraisals are used in mortgage lending decisions, while others are used for estate planning purposes.
Can a lender contact an appraiser?
While lenders cannot have direct contact with the appraisers, appraisers can speak with the buyer or seller. Be sure the appraiser is licensed, familiar with your area and doesn't let nearby foreclosures skew his appraisal value of your property.
