market
Condition
The physical state of a property, including the age, functionality, and maintenance level of its structural and mechanical systems.
In depth
Condition encompasses everything from structural integrity to cosmetic finish. Appraisers rate condition on a scale (C1 excellent through C6 poor) on the URAR form. Inspectors document specific deficiencies. Misconception: condition is not just appearance; updated kitchens may distract from structural problems, while ugly homes may have excellent bones. Practically, FSBO sellers should accurately represent condition in listings to avoid renegotiation. Pre-listing inspections help sellers price correctly and disclose proactively. In seller-financed deals, condition affects the property's value as collateral for the seller's note. Major condition issues like foundation, roof, or HVAC problems should be addressed before listing or priced into the deal. Buyers should always inspect before committing to a price.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.