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Updated almost 5 years ago on . Most recent reply

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1,135
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James Mc Ree
  • Rental Property Investor
  • Malvern, PA
860
Votes |
1,135
Posts

Appraisal question regarding condition rating

James Mc Ree
  • Rental Property Investor
  • Malvern, PA
Posted

I am about to start a renovation. The property is generally in good condition and needs surface remodeling (floors, walls & ceiling paint) and probably a new kitchen. I may replace the furnace, a/c, water heater and kitchen appliances. The soil pipe is original to the 1950 home, so I may replace that too. The roof is newer as of 2018. At the end, I will have renovated everything you can see in the house except the bathroom. The bathroom is in reasonably good shape, but I don't think it will show as comparably fresh as the rest of of the house.

I'd like to get a C2 condition on the appraisal on the 1-5 scale. My understanding is C2 generally requires that everything is "like new" even though the home is not net. How strict is "everything"? I completed a similar renovation earlier this year and was disappointed that I received a C3, but I didn't ask, "Why not C2?" and should have. I think the ARV for the property will be around $160,000-$175,000 depending on the appraisal condition. A new bathroom at around $3,500 would be worthwhile if it bumped the property from $160k to $175k.

Any thoughts from you appraisers?

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