MBA/Commercial Rating Definitions
Red Oak follows the MBA Commercial/Multifamily inspection rating definitions for our Commercial Site Inspections that are not for FNMA or Freddie Mac. You should familiarize yourself with these definitions and keep a copy of these instructions with you while performing site inspections for Red Oak. The ratings are outlined into a scoring system based on 1 thru 5, reflecting best to worst condition, not applicable N/A, and not accessible or NAV.
These ratings can also be found on-line in the Inspection Tree while you are uploading your inspection. Please see the FNMA Rating Guide for more info on those guidelines.
Ratings Definitions
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| Not Applicable N/A |
| Not Available NAV |
| • New or like new condition • All major building components are new or like new • All vacant units/space are rent ready & reflect the highest current market standards. • No deferred maintenance items (only routine maintenance) • No life safety or code violations exist • Positive impact to marketability • Deferred Maintenance and Life Safety – No actions are required |
| • Above average condition for the property’s age and market, minimal wear and tear • All major building components in functional condition • All vacant units/space are rent ready or in the process of being made rent ready • No deferred maintenance items (only routine maintenance) • No life safety or code violations exist • No impact to marketability • Deferred Maintenance and Life Safety – No actions are required |
| • Normal condition for the property’s age and market, general wear and tear • All major building components in functional condition • Most vacant units or space are rent ready or in the process of being made rent ready • Minimal Deferred and Routine maintenance items with costs that can be funded by normal operations. • No/minor life safety or code violations exist • No impact to marketability • Deferred Maintenance and Life Safety – Appropriate actions are planned or in progress |
| • Deteriorating condition for the property’s age and market • A building component is not in fully functional condition • Few rent-ready units or space • Limited major deferred maintenance &/or numerous minor deferred maintenance items • Some life safety or code violations exist • Negative impact to marketability • Deferred Maintenance and Life Safety – Actions are not addressed as quickly as required and/orfurther action is necessary, additional monitoring may be appropriate. |
| • Inferior conditions• Multiple building components non-functional • Vacant units or space are in poor to down condition • Severe deferred maintenance items • Multiple life safety or code violations exist • Negative impact to marketability • Deferred Maintenance and Life Safety – No Action taken and/or further action necessary– additional monitoring is appropriate. |
| • No components exists (therefore, no rating is possible) |
| • No component was visible due to inability to view the condition based on access, life safety, weatherconditions or other blockages. • Deferred maintenance items can not be determined based on lack of access • Further action or review may be required |
