Certified Residential Appraiser Practice Exam

What is the worst overall condition rating for a subject property in a UAD-compliant appraisal report?

1. C1

2. C5

3. C6

4. C3

The correct answer is: C6

In a Uniform Appraisal Dataset (UAD) compliant appraisal report, the condition ratings are organized on a scale where lower numbers indicate better conditions and higher numbers reflect poorer conditions. The rating system typically ranges from C1 to C6, with C1 representing properties in excellent condition, and C6 representing those in catastrophic condition requiring major repairs. The worst overall condition rating for a subject property is C6. This rating indicates a property that is severely distressed, potentially uninhabitable, or in a state of disrepair where significant rehabilitation is necessary. Properties rated C6 may have substantial issues such as extensive structural damage, mold, or other hazardous conditions that significantly impair their livability and value. Understanding the UAD condition ratings is crucial for appraisers, as it helps convey the physical state of a property accurately and consistently, allowing for better market comparisons and informed decisions by stakeholders in real estate transactions.