Property Tax Glossary Term:

Quality Grade

A rating of your home's construction quality and finish level.

What is  

Quality Grade

?

Quality grade (also called construction quality, class, or grade) rates the quality of materials and workmanship in your home's construction. A custom home with premium finishes receives a higher quality grade than a basic builder-grade home, even if they're the same size.

Quality grades typically range from economy/low to luxury/excellent, with most homes falling in average or above-average categories. This rating affects your improvement value in the cost approach—higher quality means higher replacement cost and higher assessed value.

Unlike condition (which changes over time), quality grade reflects how the home was built. However, districts sometimes overstate quality, treating standard finishes as premium or assuming upgrades that don't exist.

Why it Matters for Your Taxes

Quality grade errors happen when the district assumes your home is nicer than it actually is—often based on neighborhood or age rather than actual inspection.

Signs quality grade may be overstated:

• Builder-grade finishes rated as "good" or "excellent"

• Standard construction treated as custom

• Grade matches neighborhood but not your specific home

• No upgrades but rated as upgraded

Evidence for lower quality grade:

• Photos of standard finishes (laminate vs. hardwood)

• Builder specifications if available

• Comparison to homes that justify higher grades

• Original features, no premium upgrades

Don't let your modest home be taxed like a luxury one.

Review your classification

Example

Quality grade classifications:

Typical grades (vary by district):

• Economy/Low: Basic materials, minimal features

• Fair: Below-average construction, simple finishes

• Average: Standard builder-grade, typical for area

• Good: Above-average materials, some upgrades

• Excellent: Premium finishes, custom features

• Luxury: Highest quality, custom construction

What quality grade considers:

• Construction materials (framing, foundation)

• Exterior finishes (siding, roofing, windows)

• Interior finishes (flooring, cabinets, fixtures)

• Architectural complexity

• Special features (built-ins, millwork)

Value impact:

Moving from "average" to "good" might add 15-25% to improvement value.

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Frequently Asked Questions

How is quality grade different from condition rating?

Quality grade reflects how the home was built—materials and construction quality. Condition reflects current state—wear, tear, maintenance. A high-quality home can be in poor condition (luxury home needing repairs), and an average-quality home can be in excellent condition (well-maintained basic home).

Where do I find my quality grade?

Check your property record card from the appraisal district. Quality or grade is typically listed with construction details. It may use letter codes (A, B, C), descriptions (Excellent, Good, Average), or numerical ratings. Ask the district to explain their coding system.

Can renovations change my quality grade?

Potentially. Major upgrades (kitchen with premium finishes, high-end additions) might justify a quality grade increase. However, cosmetic updates typically don't change the underlying construction quality. The district may or may not adjust grade based on permits or inspections.