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Grade A (Excellent) - Carpet is in "like new" condition with full pile, no signs of wear, perfect untattered fringe, no moth damage, no stain, no odor no dry rot. A rug in excellent condition, both new and old, could literally pass for being "recently cut from the loom". At worst, a rug in excellent condition may have been stored for a significant period of time needing a steaming or having residue from moth flakes. Overall, a rug in excellent condtion is for the most part immaculate & in mint condition as it were from the weaver.
Grade B (Good) - Carpet is very presentable and could pass for a "new old stock" status with no [unrepaired] moth damage, serious stains, odor and no dry rot. Generally, a rug in good condition may show slightly tattered fringe, but still holds a great deal of detail in the pile. When inspecting a rug in good condition on your hands and knees, you may notice minor issues such as a small pull here or there, maybe even slight signs of traffic or use. A semi-antique rug (50 years +) can be oxidized or sun faded, and still be considered as "good condition." A newer rug with this issue should automatically be placed in the "fair" or lesser condition category. A rug 76+ years old may still be in good condition if it the first guard border is intact. In very unique instances, antique rugs with very even wear can be in "good condition" if the pile is very low or down to the knot heads with no repairs, color run, shortening, or painting. A rug with a matted pile cannot be considered as being in good condition.
Grade C (Fair) - A carpet in fair condition is showing signs of age and moderate use with small or no [unrepaired] moth damage, no odor, and no dry rot. Still presentable from 15 ft., however closer inspection reveals the rug is somewhat tattered. There is probably a significant difference of detail from front to back as the pile may be matted or blurry as the front of the rug is no where near as detailed as it once was. The rug has no cuts, should have some fringe or a re-fringe. Generally, a rug in fair condition is whole, and intact. There may be slight wear on the edge or sides of the rug. Pile wear generally does not go further than the knot heads, and worst case, maybe one small area showing slight foundation. A rug which has been significantly shortened or heavily patched may still be considered as fair condition if work has been professionally done and the rug has no other strikes against it (i.e. no moth damage, no serious repairs, color run, sun fade, etc.)
Grade D (Poor) - A rug in poor condition hints to its original beauty but may not be intact. Overall a rug in poor condition has some serviceable life left, however may have serious underlying issues such as dry rot, mold, mildew, pet stains, serious moth damage bad wear, uneven wear, patches and or odor. If the rug's foundation is exposed in one or more areas, it is showing heavy and hard use and should be classified as being in "poor" condition. The carpet may have been reduced in length or width to hide worn edges and ends. These rugs may be marker[ed] in select areas where there is heavy wear poor attempt to disguise wear. Carpet may be in a fragile state and have medium to large size stains. The rug may have several cuts, missing its side binding or seriously frayed at one or both edges.
Grade E (Very Poor) - The rug has little to no use left as a whole piece. It may have several large and obvious stains, or a great deal of the foundation showing. Excessive moth damage or heavy traffic wear may also bring a carpet to the very poor category. A rug in very poor condition may be better off as a fragment piece as it shows wear hard and heavy in select areas. The rug may have exceeded its useful life as a whole piece.