Core concept·6 min read·Sample: sf4
Condition and quality ratings (C1–C6, Q1–Q6)
The C and Q scales in plain English — plus the consistency checks that trip appraisers up: overall vs component, rating vs narrative, and subject vs every comparable.
Ask the copilot about this guide — it has read the whole hub and cites what it uses.
Two ratings carry a lot of the value story in a URAR: Condition (C1–C6) and Quality of construction (Q1–Q6). Both run best-to-worst, and — this catches people — a lower number is better. C1 is brand new, C6 is falling apart; Q1 is architect-designed luxury, Q6 is bare-bones. They're assigned to the subject and to every comparable, and they're enumerated values, so a rating outside C1–C6 or Q1–Q6 is rejected outright.
Condition: C1 to C6
| Rating | What it means |
|---|---|
| C1 | Brand new — just built, never occupied, no physical depreciation. |
| C2 | Like new — no deferred maintenance; virtually everything new or recently renovated. No repairs needed. |
| C3 | Well maintained — limited depreciation from normal wear; not every major component has been updated. |
| C4 | Adequate — minor deferred maintenance; needs only minimal and cosmetic repairs. |
| C5 | Obvious deferred maintenance — needs significant repairs, but remains livable. |
| C6 | Substantial damage or defects affecting safety, soundness, or structural integrity. |
Quality of construction: Q1 to Q6
| Rating | What it means |
|---|---|
| Q1 | Highest — unique, architect-designed for a specific owner; luxury materials and workmanship. |
| Q2 | High — custom-designed or high-end tract; high-grade materials and detailing. |
| Q3 | Above standard — designer plans; above-standard tract or owner's-site homes. |
| Q4 | Average — standard tract housing built to code with economical, average-grade materials. |
| Q5 | Basic — economy construction, lower-cost materials, minimal embellishment. |
| Q6 | Lowest — simple or no plans; may include substandard or non-code components. |
The rating is the easy part. Consistency is the test.
A reviewer rarely argues with a defensible rating. What gets a report kicked back is a rating that contradicts something else in the same file. Three checks catch almost all of it:
- Overall vs component — the URAR carries an overall rating plus separate interior and exterior ratings. An overall C2 sitting on top of an interior C4 needs an explanation.
- Rating vs narrative and photos — if the condition comments describe a dated kitchen and worn systems, a C2 won't survive; the photos have to back the number.
- Subject vs comparables — the big one. Each comparable carries its own C and Q. When a comp is rated differently from the subject, the grid should show a matching condition or quality adjustment. Same rating, no adjustment; different rating, an adjustment.
Worked example — SF4
The SF4 subject is Overall C4 / Q4 (with the exterior rated C3 — a component that differs from the overall and is commented on). Here is how the condition ratings line up across the grid:
| Condition | Quality | Condition adj. | |
|---|---|---|---|
| Subject | C4 | Q4 | — |
| Comp 1 | C3 | Q4 | −$45,000 |
| Comp 2 | C4 | Q4 | none |
| Comp 3 | C4 | Q4 | none |
- Rule logic
Fires when a sales comparable is missing its overall condition rating.- Fix
- Rate every comparable, not just the subject — each comp needs an overall condition rating (C1–C6) in the grid.
- Seen in a sample
C4in Single-family (SF1)
- Rule logic
Fires on a dwelling when HomeownerResponsibleForExteriorMaintenanceIndicator = "true" and the exterior condition rating is not provided.- Fix
- Provide the exterior rating alongside the interior and overall ones. Watch the scoping though: where someone else maintains the exterior — an HOA on most condos — the indicator is false and this rule never fires. Treating the exterior rating as unconditionally required is how you end up chasing a phantom.
- Seen in a sample
C4in Single-family (SF1)
See the ratings and adjustments in context in the SF4 sample report.
ReportReady's AI QC pass reads these ratings for the subject and every comparable, checks them against the grid adjustments, and flags a differing rating with no supporting adjustment — the reviewer catch, before you submit.
Keep reading
- UAD 3.6 & the new URAR: what actually changedThe redesign replaces the fixed 1004/1073/1025/2090 forms with a single dynamic URAR built on MISMO v3.6. Here is what that means for how you complete and deliver a report.8 min
- Understanding the comparable grid in UAD 3.6The grid is no longer a fixed rectangle of cells — it is structured, repeatable comparable data. Here is how to think about it and keep it consistent.7 min