It makes me so happy to see that the blog I wrote 12 years ago explaining how appraisals work is still getting attention! With hundreds of views every year, I felt it was time for an update.
A lot has changed for appraisers since 2012. The biggest change? The addition of ratings for Quality of Construction and Condition.
Previously, as you can see in the comps grid from the 2012 blog, there wasn’t a unified standard for how appraisers noted the quality of construction or the condition of a home.
Quality of Construction: Terms like “Average” or “Good” used to be the norm. Now, there are defined terms for quality, as shown in the table below.
Condition Ratings: The old terms like “Average” or “Below Average” have been replaced by a standardized rating scale from C1 to C6.
It’s still up to the appraiser to determine the appropriate quality and condition rating for each property in the report.
Here are the quality ratings used by appraisers:
Some appraisers use the quality rating assigned by the tax assessor.
Check Your Tax Record: If you pull up your tax record in SDAT, there’s a field for “Quality” with a number between 1-9. So how does the tax assessor determine the rating? The tax assessor bases this number on the dwelling’s initial construction or the quality of construction after renovations are reviewed by the assessor.
Here are the detailed Condition Ratings and Definitions:
So a rating of C1 would be used for newly constructed homes, while C6 is reserved for homes with severe damage and defects.
Other Notable Changes: Modern appraisals now include a glossary of abbreviations, definitions for updated vs. non-updated vs. remodeled, and has a standard in place for denoting full bath vs a half bath. Reports now state that three-quarter baths are to be defined as a full bath and a quarter bath (baths with only a toilet) should not be included in the bathroom count at all.
These changes help clarify the report for everyone.
Want to keep up to date on real estate insights like this? Follow us on Instagram, like us on Facebook, or sign up for our newsletter. Know an agent who wants to join a collaborative Team that takes real estate knowledge to the next level? Reach out to Wendy!
Written by Tess Loys, Team Manager for The Wendy Slaughter Team of VYBE Realty. Special thanks to Brian Feher and Carolyn Failla, two of our recommended vendors, for their added insight!
