Definition
Standardized classifications of property condition used in appraisals and inspections like Excellent, Good, Fair, or Poor. Condition ratings directly affect appraised value.
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Common rating scales include: Excellent (new or nearly new, no repairs needed), Good (normal wear, minor repairs), Average (moderate wear, some repairs), Fair (significant wear, major repairs needed), Poor (extensive damage, major systems failing). Appraisers adjust value based on condition; poor condition reduces value substantially. Inspection reports often use similar scales to rate property systems.
Pro Tip
Improve property condition ratings by addressing major systems and deferred maintenance.
Example
An appraisal rated a home's overall condition as 'Good,' with rating adjustments for older roof (Fair condition) and updated kitchen (Excellent condition). The mixed conditions reflected in the appraised value of $435,000.