I received a Low Appraisal Value, what do I do?
I just received a low appraisal value on my home or the home I am purchasing. What do I do? Although the report may look intimidating, there are several key points to investigate to make sure something was not overlooked. Two of those key points are the condition and quality rating. I have received some very low appraisals that just don't make sense only to find the condition and or quality were incorrectly entered. You will find these on each of the properties used in comparison and most importantly the subject property.
Here are the Condition Categories:
C1 - Recently constructed; not previously occupied; new components, fixtures, and mechanical systems
C2 - No deferred maintenance; minimal physical deterioration; recently renovated or upgraded to current standards and style
C3 - Well maintained; normal wear and tear; some (not all) components updated or renovated (first replacement cycle)
C4 - Minor deferred maintenance; normal wear and tear; adequately maintained; minor repairs needed
C5 - Obvious deferred or lack of maintenance; larger repairs needed; livability reduced due to condition
C6 - Substantial damage; lack of maintenance; condition causes safety or structural concerns; major repairs needed
Here are the Quality Categories:
Q1 - Architecturally designed or custom-built; extremely high quality materials, workmanship, finishes, fixtures
Q2 - Often custom designed or highly upgraded/modified from basic plans, often in upper-level developments; high quality materials, workmanship, finishes, and fixtures
Q3 - High quality construction; some upgrades from standard; above-average workmanship and materials; well finished
Q4 - Standard design from available plans; code-compliant, builder grade workmanship, materials, and finishes; industry standard; few upgrades
Q5 - Basic design and functionality; code compliant; below average workmanship, materials, and finishes
Q6 - Basic quality/cost; may not be suitable for full-time occupancy; limited electrical, plumbing, mechanical systems; "DIY" type workmanship; possible safety issues
Be sure the correct condition and quality categories are selected. If you have a question, be sure to ask your Realtor.
Comments (0)
Be the first to comment on this post!
Post a Comment