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Here's what C4 condition means: we're describing a dwelling that has been adequately maintained but shows some wear and signs of age—it's past the "like new" stage (C2 and C3) but still has all its major building components in working order, even though some deferred maintenance and minor to moderate repairs may be needed. The passages shown don't complete the full C4 definition (the UAD text cuts off mid-sentence), but Freddie Mac's summary confirms that C4 falls in that middle range: more deterioration than a well-kept home, but not yet at the level of obvious, long-deferred maintenance that would push it into C5 or C6. Once an appraiser assigns a property a C4 rating in one appraisal, that rating stays with that property when it's used as a comparable sale in future appraisals—the rating doesn't change between reports. Straight from UAD 3.6 / URAR (FNMA), Fannie Mae Selling Guide, and Freddie Mac Seller/Servicer Guide — nothing added.

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© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

© Copyright Notice: © The Appraisal Foundation. Excerpts shown for research and reference only (fair use, 17 U.S.C. § 107) — every certified appraiser is required to have their own current copy under USPAP's own Record Keeping/Competency provisions; this tool helps you find the exact passage, it doesn't replace owning it. Full current edition available for purchase at appraisalfoundation.org. Reproduction restricted per The Appraisal Foundation's copyright policy.

Chief Appraiser Picks · Related Videos An Inside Look at UAD 3.6 (Fannie Mae) Appraisal Property Condition Ratings: C1, C2, C3, C4, C5, C6 (OfferMarket)

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#1 UAD 3.6 / URAR (FNMA) Page 348

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Appendix 2: Condition and Quality Rating Definitions Appendix F-1: URAR Reference Guide Page 348 of 375 Version 1.3 Appendix 2: Condition and Quality Rating Definitions Condition…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 348 · View at official source (fanniemae.com/uad) →

Appendix 2: Condition and Quality Rating Definitions Appendix F-1: URAR Reference Guide Page 348 of 375 Version 1.3 Appendix 2: Condition and Quality Rating Definitions Condition Rating Definitions Condition Ratings describe the physical condition of a property as of the effective date of the appraisal on an absolute basis, not on a relative basis or how a property relates to other properties. Condition Rating definitions are used for Overall Condition, Exterior Condition, and Interior Condition. Condition Rating Definitions Rating Condition Rating Definition Criteria C1 The dwelling is 100% newly constructed, completed within the past 12 months, has never been occupied, and exhibits no signs of wear or use. A dwelling in C1 condition: • Has a foundation that must be 100% original to the new construction. • May include non-structural components composed of “like new” recycled materials (e.g., reconditioned or refinished barn wood). • Is a 100% newly constructed dwelling that does not exhibit physical depreciation. C2 The dwelling exhibits like-new condition. It has been recently constructed or entirely remodeled within 36 months prior to the appraisal date, while retaining portions of the pre-existing structure. The dwelling may have been occupied but features no deferred maintenance and requires no repair. A dwelling in C2 condition: • Has been recently constructed (within the past 36 months), and otherwise exhibits virtually no wear and tear, but is no longer new due to occupancy or use (e.g., model home), or • Has been fully remodeled "to the studs" including new major components; a new dwelling built utilizing the footprint or façade of a pre-existing dwelling; or a newly converted condo/co-op in a pre-existing building. C3 The dwelling has been well-maintained and exhibits only minimal wear and tear. The dwelling may exhibit only minor age-related physical depreciation; or, most components, but not every major building component, has been updated or renovated. A dwelling in C3 condition will likely have: • Components or rooms that are older but have been very well maintained or experienced minimal use, and show little or no physical depreciation, or • Major components or rooms that have been recently updated, but which do not constitute a full-home renovation/remodel. Examples of major components include but are not limited to a combination of (one or more): • Newer roof • Some newer mechanicals • New / newer floor coverings • Remodeled kitchen or bathroom(s) C4 The dwelling has been adequately maintained and

#2 Fannie Mae Selling Guide Page 588

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Location. When an appraiser selects a rating and/or description of the subject property for a sales transaction, the selected rating and/or description must remain the same when…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 588 · View at official source (selling-guide.fanniemae.com) →

Location. When an appraiser selects a rating and/or description of the subject property for a sales transaction, the selected rating and/or description must remain the same when reflecting that specific transaction. For example, if a C4 rating is selected for the sale of the subject property, then that property remains a C4 when using that specific sale as a comparable in future reports. The same expectation holds true for ratings and descriptions of comparable sales. When a comparable is used in a subsequent appraisal, the ratings and descriptions of that property should not change from one appraisal to the next when it reflects the same sale transaction. Note: Properties can have the same rating or description and still require an adjustment. It should be noted this not only applies to condition and quality ratings but can apply to other ratings or descriptions as well. For example, all water views may not be equal. In this instance, an adjustment should be made and explained in the Additional Comments section of the form or in an addendum. Property Condition Lenders must take the necessary steps to confirm that a property meets Fannie Mae’s condition requirements as outlined in this topic. The table below provides the requirements for property condition. ✓ Requirements The appraisal report must express an opinion about the condition of the improvements based on factual data of the improvements analysis. Appraisals based on interior and exterior inspections must include complete visual inspections of the accessible areas of the property. Note: Appraisers are not responsible for hidden or unapparent conditions. Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the presence of hazardous wastes, toxic substances, or adverse environmental conditions. Detrimental conditions of the improvements must be reported in the appraisal even if the conditions are typical for competing properties. The appraiser must consider and describe the overall condition and quality and condition of the property improvements. (See Identifying Property Condition; Definitions of Not Updated, Updated, and Remodeled; and Identifying Quality of Construction in this topic for details.)

#3 UAD 3.6 / URAR (FNMA) Page 17

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17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages,…

UAD 3.6 / URAR (FNMA) · uad-lessons-learned-job-aid.pdf · Page 17 · View at official source (fanniemae.com/uad) →

17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages, and Deficiencies (Unit Interior) table, but indicated that the recommended actions were None. By definition as seen in Appendix F-1: URAR Reference Guide, missing floor coverings should result in a C5 rating: • If this is intended to be an as-is appraisal due to the missing floor coverings, by definition this would be a C5. • If the appraisal was intended to be made subject to the installation of the floor coverings, then it could be made a C4.

#4 Fannie Mae Selling Guide Page 592

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Level of Updating Description Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion.…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 592 · View at official source (selling-guide.fanniemae.com) →

Level of Updating Description Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion. A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of square footage). This would include a complete gutting and rebuild. Appraisals Completed “As Is” Fannie Mae permits appraisals to be based on the “as is” condition of the property provided existing conditions are minor and do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance are typically due to normal wear and tear from the aging process and the occupancy of the property. While such conditions generally do not rise to the level of a required repair, they must be reported. Examples of minor conditions and deferred maintenance include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails, or cracked window glass. Properties with condition ratings C1, C2, C3, C4, and C5 as previously defined are eligible in “as is” condition. Properties with the initial condition rating C6 indicate one or more deficiencies that impact the safety, soundness, or structural integrity of the property. Therefore, the appraisal must be completed "subject to" completion of the deficient item(s) with a minimum resulting condition rating of C5. See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for additional details when completing appraisals on properties with safety, soundness, or structural integrity deficiencies. Quality of Construction Rating For appraisals required to be completed using the UAD, the appraiser must assign one of the following standardized quality ratings in the table below when identifying the quality of construction for the subject property and comparable sales.

#5 Freddie Mac Seller/Servicer Guide Page 1

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SOURCE: Chief Appraiser Knowledge Base — Freddie Mac Property Condition and Quality Ratings (C1-C6 / Q1-Q6) Compiled from: Freddie Mac Single-Family Seller/Servicer Guide, Section…

Freddie Mac Seller/Servicer Guide · Property_Condition_and_Quality_Ratings.txt · Page 1 · View at official source (guide.freddiemac.com) →

SOURCE: Chief Appraiser Knowledge Base — Freddie Mac Property Condition and Quality Ratings (C1-C6 / Q1-Q6) Compiled from: Freddie Mac Single-Family Seller/Servicer Guide, Section 5605.5 (Improvements Analysis); the joint Fannie Mae/Freddie Mac Uniform Appraisal Dataset (UAD) Appendix D, Condition and Quality Ratings (the same standardized rating scale both GSEs require appraisers to use, adopted by Freddie Mac into this section of its own Guide); Freddie Mac's public "Q&A with Freddie Mac's Chief Appraiser: Getting it Right with Property Quality and Condition Ratings" article (sf.freddiemac.com). Compiled and added August 22, 2026, per Kelly, after the Internal Accuracy Testing Bot found "what does freddie mac say about property condition ratings" had NO real Freddie Mac content to draw from at all -- the Documents/Freddie_Mac folder previously contained only a placeholder file of instructions for manually downloading the full Guide (Freddie Mac does not publish it as a single PDF). This is a genuine, sourced summary of Section 5605.5's condition/quality rating framework, written in Chief Appraiser's own words from the sources above -- it is NOT a verbatim reproduction of Freddie Mac's copyrighted Guide text. Direct quotes below are short and attributed. Treat this as a solid working answer, not a substitute for pulling the live Guide section if word-for-word Guide language is ever needed. ===================================================================== Freddie Mac Property Condition and Quality Ratings (C1-C6 / Q1-Q6) Freddie Mac's Single-Family Seller/Servicer Guide, Section 5605.5 (Improvements Analysis), requires appraisers to assign a property two separate, standardized ratings: a Condition rating (C1 through C6) and a Quality rating (Q1 through Q6). These are the same UAD-standardized ratings Fannie Mae requires on the same appraisal forms -- Freddie Mac and Fannie Mae adopted one shared scale precisely so a single appraisal report works for either investor. Condition (C1-C6) measures how well the improvements have been maintained, independent of their age or original construction quality. In summary: C1 — new construction, never occupied, no physical depreciation. C2 — no deferred maintenance, little to no physical depreciation; either new or recently, completely renovated. C3 — well-maintained; minor physical deterioration from normal wear and tear; adequately maintained. C4 — some deferred maintenance and physical deterioration; minor to moderate repairs needed; all major building components still function. C5 — obvious deferred maintenance; needs significant repair; maintenance has likely been deferred for a long period. C6 — substantial damage or deferred maintenance, with deficiencies affecting the safety, soundness, or structural integrity of

#6 2024 USPAP Page 437

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conditions that might be necessary in a real property appraisal assignment include: 1. Appraising proposed improvements such as new construction or additions, as if they existed…

2024 USPAP · 2024_USPAP_text.txt · Page 437 · View at official source (The Appraisal Foundation — USPAP) →

conditions that might be necessary in a real property appraisal assignment include: 1. Appraising proposed improvements such as new construction or additions, as if they existed as of a current date, when they do not. 2. Appraising a property as if it were free of any contamination when it is known to be contaminated, 3. Appraising a site as if sewer were available when the sewer Is not available. 4. Appraising a site as if the zoning were different. 5. Appraising irrigated farmland on the premise that the water supply is adequate for irrigated crop production, knowing that the existing supply is not adequate. 223. WHEN A HYPOTHETICAL CONDITION MAY BE USED Question: May an appraiser use any type of hypothetical condition In developing an appraisal? Response: No. Standards Rule 1-2(g) states, in part A hypothetical condition may be used In an assignment only If: (use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; and (i) use of the hypothetical condition results in a credible analysis: Standards Rules 3-2(f), 5-2(), 7-2(g) and 9-2(g) contain similar wording. 224, BEFORE ACQUISITION VALUE AND STANDARDS RULE 1-4(F) Question: I'm doing an appraisal assignment for a government agency that Is subject to the provisions of The Uniform Relocation Assistance and Real Property Acquisitions Act of 1970, as Amended (commonly known as, the Uniform Act), and Its Implementing regulation, 49 CFR Part 24. In the before acquisition value appraisal, the regulation requlres appralsers to disregard any decrease or Increase In the market value of the property that has been caused directly by the project. This regulation appears to confilct with USPAP, Standards Rule 1-4(f), which addresses the analysis of the effect on value of anticipated public or private Improvements. USPAP Guidance: Frequently Asked Questions co 233 © The Appraisal Foundation sac --- Page 322 --- Eos « [APPRAISAL DEVELOPMENT ~ EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS Obviously, | must comply with the Federal law and regulations, but | am unsure how to reconcile this with the requirements of USPAP, Standards Rule 1-4(f). Does this situation create a USPAP Jurlsdletional exception or Is this simply an assignment condition? Response: When It applies, 49 CFR Part 24 is an assignment condition. The 49 CFR Part 24 regulation that requires appraisers to disregard any decrease or increase in the market value of the property that has been

#7 2024 USPAP Page 441

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PROPERTY NOT IN AS-IS CONDITION Question: Our local community public works department has declared a parcel of land surplus and asked me to appraise the real property at market…

2024 USPAP · 2024_USPAP_text.txt · Page 441 · View at official source (The Appraisal Foundation — USPAP) →

PROPERTY NOT IN AS-IS CONDITION Question: Our local community public works department has declared a parcel of land surplus and asked me to appraise the real property at market value with an effective date of the appralsal prior to Its advertisement for sale. However, the public works director sald there will be a covenant placed on the land Immediately prior to the sale that will restrict Its use to open space or recreation, and the value In my appralsal Is to reflect that title condition. Currently, the property Is in use by the public works department and does not have such a use limitation. Since | know the as-Is condition of the property title Is not as the director described It, can Ido the appraisal as If the covenant was In place? If so, would this covenant be an extraordinary assumption or a hypothetical condition In the appraisal? Response: (a) Given the type and definition of value (market value with the tile conditioned as the director described), and intended use of the assignment results (to provide the client with information for use in deciding an asking price), the appraisal must reflect an analysis as ifthe covenant were in place. (0) The appraisal of the property as though it had the covenant in place requires a hypothetical condition in the appraisal, because, as of the effective date of the appraisal, the property did not have the covenant in place (Le., the covenant is that which is contrary to what is known by the appraiser to exist on the effective date, but is used for purpose of analysis). If instead you did not know whether the covenant was or was not in place as of the effective date of the appraisal, but you based the appraisal on the covenant being in place, the appraisal would be based on an extraordinary assumption. This is because you would be presuming as fact otherwise uncertain information about the condition of title which, if found to be false, could alter your opinions or conclusions. If instead of saying there would be a covenant recorded after the effective date of the appraisal, the director provided a title document that sald the covenant was already in place, the appraisal would not require either a hypothetical condition or an extraordinary assumption about that land use limitation. This is because the title condition used in the appraisal would have been

#8 IAAO Standards Page 31

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THIRD EDITION Conditional Sale — A sale, especially of chattels, in which the transfer of title is made to depend on the performance of a condition subsequent to the making of the…

IAAO Standards · IAAO-Glossary_3rd-Ed_final.pdf · Page 31

THIRD EDITION Conditional Sale — A sale, especially of chattels, in which the transfer of title is made to depend on the performance of a condition subsequent to the making of the sales contract and delivery of goods. Note: The most common condition is that the remainder of the purchase price be paid. Property held under a conditional sales contract may be repossessed without foreclosure proceeding, and the former holder has no equity of redemption. Conditions — Restrictions created by a qualification by the grantor of a deed, upon breach of which the estate is defeated and reverts to the grantor (or heirs). Condominium — A real property ownership concept in which one can own an undivided interest in a portion of the real property (typically called a unit) and own a shared interest with other unit owners in the public areas of the real property (the common elements). Condominium Unit — The portion of real property owned individually in a condominium ownership concept (as opposed to the common elements in which ownership is shared with other unit owners). Confidence Interval — A range of values calculated from the sample observations that are believed, with a particular probability, to contain the true population parameter (mean, median, COD). The confidence interval is not a measure of precision for the sample statistic or point estimate, but a measure of the precision of the sampling process. Confidence Level — Indicates the probability with which the estimation of the location of a statis- tical parameter (for example, arithmetic mean) in a sample survey is also true for the larger popu- lation from which the sample is derived. Confidence Score — The automated valuation model (AVM) confidence score is a value that indi- cates the level to which each of multiple AVM models “agrees” with the other estimated values for a given property. Conformity — See Principle of Conformity. Consideration — The amount of money and other valuable goods or services on which a buyer and a seller agree to consummate a sale. Consigned Goods — A type of inventory that is in the possession of a selling agent but owned by another party. The agent has no equity interest in the inventory. The selling agent is often compen- sated in the form of a sales commission paid by the owner of the inventory. Consignment — 1) A shipment of goods from one person (the

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