Condition Ratings and
Appraisers must utilize the following
standardized condition ratings within the appraisal report.
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% new foundation and the recycled materials
and the recycled components have been rehabilitated/re-manufactured into
like-new condition. Recently constructed improvements that have not been
previously occupied are not considered “new” if they have any
significant physical depreciation (i.e., newly constructed dwellings
that have been vacant for an extended period of time without adequate
maintenance or upkeep).
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 All outdated components and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
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.
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
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 useable and functional as a residence.
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.