UAD Condition and Quality Adjustment Calculator

CONDITION

QUALITY

UAD condition ratings C1-C6

Fannie Mae's Uniform Appraisal Dataset defines six condition ratings. C1 applies to new construction that has never been occupied. C2 is near-new with only minor wear. C3 covers well-maintained homes with normal wear. C4 has some deferred maintenance. C5 has significant deferred maintenance requiring repair. C6 is uninhabitable without major renovation.

UAD quality ratings Q1-Q6

Quality ratings describe construction caliber. Q1 is exceptional -- custom or unique design with high-end materials throughout. Q2 is excellent quality with custom elements. Q3 is good quality with upgraded finishes. Q4 is standard average quality. Q5 is fair quality with economical materials. Q6 is low quality or minimal construction standards.

Why condition and quality adjustments are needed

When a comparable sale differs from the subject in condition or quality, the raw sale price does not accurately represent the subject's value. Appraisers make dollar adjustments to "bring the comp to the subject" -- adding value when the subject is superior, deducting when the subject is inferior.

How adjustment amounts are derived

The best way to support condition or quality adjustments is through paired sales analysis -- finding two sales identical in all ways except the factor being measured. Absent sufficient paired data, appraiser judgment informed by market trends, cost data, and professional experience guides the selection.

What are UAD condition ratings?

UAD condition ratings are standardized codes (C1 through C6) defined by Fannie Mae for use on the URAR and other standard appraisal forms. They provide a consistent framework for describing a property's physical condition across appraisals. C3 (average) is the most common rating for typical owner-occupied properties.

How do I calculate condition adjustments?

The most defensible method is paired sales analysis -- finding two recent sales that are identical except for condition, then measuring the price difference. When paired data is scarce, appraisers use market knowledge, cost-to-cure estimates, and the ranges suggested by valuation services. This calculator provides commonly-used starting points by value range.

Do quality adjustments use the same dollar amounts as condition?

Generally yes, both are applied per rating step and calibrated to the property's value range and market. However, quality adjustments can be larger than condition adjustments in high-value markets because the difference between Q3 and Q2 construction materials and craftsmanship may be quite significant. Always verify with local market data.