If I remembered correctly:
The worst state an Item can get is Unusable (Applies to everything, armors, weapons, even horses), by then, the item will be 'literally' unusable.(click to show/hide)(click to show/hide)(click to show/hide)(click to show/hide)
For 2H: Normal, Chipped (-1), Cracked (-2), Unusable
For Medium+ Armors: Normal, Rusty (-1), Battered (-2), Ruined (-3), Unusable
For Shields: Normal, Dented (-1), Battered (-2), Unusable
For Horses: Normal, Stubborn (+1 Riding Requirement), Swaybacked (-2), Lame (-3), Half-Dead(-4), Unusable
As for the stats, -1 almost made no difference for weapons or armors, since it's only a few points lowered damage and armor. But for a -2 weapon, it starts lowering speed rating and damage even more.
Red Coat of Plates was 50 armor originally, now at ruined state (-3), it's only 30. What's 30? A studded leather coat, but with the weight of 19.5 instead of 5.
If an item is at unusable state, it won't disappear, you just won't be able to use it until it's repaired.
And it only charges you the same amount of repair from unusable back to normal (from -3/-4 to 0), if you can put up with the disadvantage, that means you saved three to four times the repair fee.
...What I am wondering is if I get a +3 masterwork item, if it will degrade to first to +2, then +1...
(+3) Deadly Steel Pick > (+2) Balanced Steel Pick > (+1) Heavy Steel Pick > (-0) Steel Pick > (-1) Chipped Steel Pick > etc..It goes like that, saved me tons of gold to use my plated charger until its stubborn :mrgreen:
Quick question, if I had say, a MW longsword and I disabled auto repair, and it got damaged. It went to balanced and I had no money to repair it. Would I be able to repair it back to the state of heirloom it was at before?