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  1. #1
    Join Date
    Feb 2010
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    Irvine, California
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    Default What is the property condition ratings ?

    I received a mail from a client who going to invest to a rental property I 've done inspection.
    He stated my report does not include " property condition ratings " and he want to pick one from c1 to c6. The mail looks very formal and important to them ( maybe invest group)
    now, I have 2 questions;
    Anyone knows about this 'property condition rating chart', Where it comes from?
    Should I answer him ( based on my report, I 'll pick between C4 to C5)

    Here is the chart (Sorry, it's too long. Don't read all if not interested )



    Rating
    Description
    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.
    Note: Newly constructed improvements that feature recycled materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100 percent new foundation and the recycled materials and the recycled components have been rehabilitated/re-manufactured into like-new condition. Improvements that have not been previously occupied are not considered “new” if they have any significant physical depreciation (that is, newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep).
    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 All outdated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category either are almost new or have been recently completely renovated and are similar in condition to new construction.
    Note: The improvements represent a relatively new property that is well-maintained with no deferred maintenance and little or no physical depreciation, or an older property that has been recently completely renovated.
    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.
    Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is being well– maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation.
    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.
    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. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property.
    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 are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.
    Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy, but remain functional.
    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.
    Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements.

    Similar Threads:
    Inspection Referral SOC

  2. #2
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
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    25,941

    Default Re: What is the property condition ratings ?

    Sounds like it is from the Property Condition Assessment form, which is a different type of inspection, for a different purpose, which costs more, and is done on the Property Condition Assessment form ... and did I say it the inspection costs more (because it takes longer) ...

    You can get the form here: ASTM E2018-15 Standard Guide Property Condition Assessments: Baseline Property Condition Assessment Process

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  3. #3
    Join Date
    Mar 2007
    Location
    Garland, TX
    Posts
    620

    Default Re: What is the property condition ratings ?

    Property Condition Ratings

    For appraisals required to be completed with the UAD, the appraiser must assign one of the following standardized Condition ratings in the table below when identifying the condition of the improvements for the subject property and comparable sales.

    https://www.fanniemae.com/content/gu...b4/1.3/06.html

    badair http://www.adairinspection.com Garland, TX 75042 TREC # 4563
    Commercial-Residential-Construction-EIFS-Infrared Thermography
    life is the random lottery of events followed by numerous narrow escapes

  4. #4
    Join Date
    Feb 2010
    Location
    Irvine, California
    Posts
    47

    Default Re: What is the property condition ratings ?

    So, you guys mean that rating is beyond the scope of a home inspection ?

    Thank you for those informations


  5. #5
    Join Date
    Mar 2007
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    Ormond Beach, Florida
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    Default Re: What is the property condition ratings ?

    Quote Originally Posted by Ben Im View Post
    So, you guys mean that rating is beyond the scope of a home inspection ?
    Ben,

    Yes, no, and maybe.

    Yes - Condition Assessment inspections and Property Condition Ratings are outside the scope of a normal/regular home inspection.

    No - they are not outside the scope of what an investor may ask for ... or what they may expect if they thought that was what they were asking for without knowing what to ask for.

    Maybe - it depends on what the client asked for, on what you talked about, and what is in your contract ... but Condition Assessment inspections are typically asked for on commercial properties, seldom on residential properties (at least to my knowledge, having retired from home inspections over 10 years ago).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  6. #6
    Join Date
    Feb 2008
    Location
    Chicago IL
    Posts
    1,967

    Default Re: What is the property condition ratings ?

    Another HI doing commercial work that doesn't understand its not a home inspection. Different standards, different report, different time and cost.

    www.aic-chicago.com
    773/844-4AIC
    "The Code is not a ceiling to reach but a floor to work up from"

  7. #7
    Join Date
    Mar 2007
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    Ormond Beach, Florida
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    Default Re: What is the property condition ratings ?

    Quote Originally Posted by Markus Keller View Post
    Another HI doing commercial work that doesn't understand its not a home inspection. Different standards, different report, different time and cost.
    I disagree, Markus - he was not doing "commercial work", it was stated as being a "rental property", which indicates that it is residential, not "commercial", and the person buying the house, as an investor, could very well have asked for a "home inspection".

    Then, the investor may have been talking to other investors (who may be investing in commercial properties) started asking about the different ratings.

    I would not jump on someone and make a dig at them as "Another HI doing commercial work that doesn't understand its not a home inspection.", when in fact it may well have been nothing more than a "home inspection" which was asked for.

    And, yes, I am guilty of jumping on you for your jumping on him with your dig - and, to me, your dig was completely unnecessary when we do not know what was asked for ... which could lead me to say (but I won't) that you do not understand the difference between residential and commercial based on your dig (but, I guess I just did say that, didn't I? ).

    We must all fully understand the question (as best possible) before making digs, or, maybe we should not make digs anyway, rather explain differences based on different scenarios of what may, or may not, have occurred.

    Putting my shovel down now ... no more digs.

    Here is the shovel so you can dig your way back up to ground level ... (just lending a helping hand here).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  8. #8
    Join Date
    Feb 2010
    Location
    Irvine, California
    Posts
    47

    Default Re: What is the property condition ratings ?

    The buyer ordered a 'Home Inspection' and I gave them a report on the duplex ( 5bed/3bath on each unit) which many tenants reside.
    then the buyer asked me about the 'property condition rating' a week later
    ...
    that's all


  9. #9
    Join Date
    Dec 2009
    Location
    Florida
    Posts
    552

    Default Re: What is the property condition ratings ?

    Quote Originally Posted by Markus Keller View Post
    Another HI doing commercial work that doesn't understand its not a home inspection. ......
    Cold Markus... VERY cold!!!!


  10. #10
    Join Date
    Dec 2007
    Location
    Holladay, UT
    Posts
    565

    Default Re: What is the property condition ratings ?

    Quote Originally Posted by Markus Keller View Post
    Another HI doing commercial work that doesn't understand its not a home inspection. Different standards, different report, different time and cost.
    A Duplex is not normally considered a commercial property.

    Tom Rees / A Closer Look Home Inspection / Salt Lake City, Utah

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