Yeah, well, I went ahead and did it. This mod is the result of an idea I got in the FWE thread. After some detective work reverse engineering the equation governing how the condition of an item governs its value, and some balance considerations, yours truly came up with this little mod. This mod changes the way condition impacts the value of an inventory item, such as a weapon or an armor, so that the condition has a smaller influence on the value of an inventory item.

In vanilla Fallout 3, an item at zero health had no value (even if it could be scavanged for parts), at 50% health it was worth 35% of its base value, and at 100% its full base value, corresponding to the formula:

% of base value = http://forums.bethsoft.com/index.php?/topic/1116422-relz-zumbs-smaller-condition-effect-on-item-value/100 * healthPercent^1.5

Note how particularly the higher health percentages yield quite a change in value.

This mod changes that, so the condition of an item plays a much smaller role in its value. At zero health, the item will be worth 10% of its base value. At 50% health it is worth 35% of its base value, and at 100% it is worth 60% of its base value, corresponding to the formula:

% of base value = http://forums.bethsoft.com/index.php?/topic/1116422-relz-zumbs-smaller-condition-effect-on-item-value/10 + 50 * healthPercent

You may ask why it maxes out at 60% value. The reason is balance. Having it max out later would make every weapon and armor much more valuable. As an example, letting it max out at 80% would cause 50% health to give 50% of the base value, effectively increasing the value by 43%.

Download: http://www.fallout3nexus.com/downloads/file.php?id=14652

Compatibility
This mod will be incompatible with any mods that edit the same game settings. Take a look in FO3Edit, and choose which mod to use. Seriously, only use one! Go http://geck.gamesas.com/index.php/Item_Condition_And_Value to get some more information on how the equation works.

At time of writing this is compatible with MMM and FWE (both in version 6). Arwens Realism Tweeks does something similar where it multiplies the vanilla equation with 0.5, so that the value of an item in full health maxes out at 50% of its base value. Using this mod with Arwens Realism Tweeks are likely to mess up her pricing balance, so it is not recommended. I have no idea if it is compatible with FOOK or other overhauls.

Terms of Usage
You are free to use, distribute and edit this mod. If you do either of these things, I ask that you kindly notify me.

My Hard-Core module already alters these same values (although somewhat differently), so this would not really be compatible with my Realism Tweaks.

You know what that means, don't ye? I am sooo going to have to take a look at your rebalance!

Thanks for the heads up, will update description soon.

Edit: Had a look and updated description above