When adding in new items to your brickfolio, the fourth question is "condition". Are they asking the condition you first purchased i.e. did you purchase a new or used set or are they asking what condition is it currently in (i.e. did you open it, assemble and play with it)? If it is the latter, then the question seems redundant since in question five ("item specifics"), they ask whether you used it as a display set (light use) or played with it (heavily used)?

Welcome to the site. It means the condition the set is currently in. The only two prices used for the price guide is new and used. No way to determine the price according to the degree of use.

I filled in my entire brickfolio with "used" just to be on the safe side since I use all my purchases as display sets - thanks for the confirming that I did it the right way.