The Blog

Have you ever looked at an appraisal?  I mean really looked.  If you have, you’ve probably noticed a weird code concerning your subject property and its comparables.  You’ve probably paid it no mind, but here’s why you should:  It could kill your deal!

Here’s a look at what those little property condition codes mean.  Hint, C1-C4, you’re good to go and C5-C6, WOOOAHH!!!

C1

• The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new and the dwelling features no physical depreciation.

 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 out dated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category are either almost new or have been recently completely renovated and are similar in condition to new construction.

C3

• The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained.

C4

• The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. 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.

C5

• The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains usable and functional as a residence.

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 repair components.