An appraiser assigns a condition rating of 'C3' to a 25-year-old single-family residence using the Fannie Mae Selling Guide condition scale. Which observation would be *inconsistent* with that rating?
Correct Answer
C) Kitchen cabinets have multiple loose hinges and one collapsed drawer slide, but all doors open and close and countertops are intact
Fannie Mae’s C3 condition rating denotes 'Fair' — meaning the property has noticeable deferred maintenance and/or defects that affect functionality or longevity but do not require immediate repair for safety or habitability. Per the Selling Guide (v11.2, Section B2-2.1), C3 allows for items needing repair within 2–5 years. Option C describes minor cosmetic/functional issues (loose hinges, collapsed slide) that are typical of normal wear-and-tear and fall within C4 ('Poor') or even C5 ('Very Poor') thresholds — not C3. In contrast, A, B, and D reflect systems or components nearing end-of-life (roof, HVAC) or showing early deterioration (stucco) consistent with C3. USPAP Standard 2 requires condition ratings to be applied consistently and supportably.
Why This Is the Correct Answer
Fannie Mae’s C3 condition rating denotes 'Fair' — meaning the property has noticeable deferred maintenance and/or defects that affect functionality or longevity but do not require immediate repair for safety or habitability. Per the Selling Guide (v11.2, Section B2-2.1), C3 allows for items needing repair within 2–5 years. Option C describes minor cosmetic/functional issues (loose hinges, collapsed slide) that are typical of normal wear-and-tear and fall within C4 ('Poor') or even C5 ('Very Poor') thresholds — not C3. In contrast, A, B, and D reflect systems or components nearing end-of-life (roof, HVAC) or showing early deterioration (stucco) consistent with C3. USPAP Standard 2 requires condition ratings to be applied consistently and supportably.
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