Reviewing CDU and grade of your home Review the appraisal district’s description of grade and CDU (condition, desirability and utility) for your house. Grade is a qualitative evaluation of the construction materials and level of craftsmanship used to build your house. Most appraisal districts have about eight to 15 different grades to describe homes of varying quality. Entry-level appraisers typically make the initial estimate of grade. The appraisal district’s estimate of grade for houses within a subdivision often varies for homes that are essentially identical. This can occur when two or more appraisers are evaluating the grade of properties within a subdivision. The CDU or condition factor is highly unreliable. However, the appraisal district uses this as a key factor in valuing your property. The appraisal district, in most areas, believes it actually knows the quality and condition of improvements in homes that are 20-to-80-years-old, even though they have not been in the hou...