Reinforced concrete is the most commonly used material in urban, road, and industrial structures. Quantifying the condition of the reinforcing steel can help manage the human and financial risks that arise from unexpected reinforced concrete structure functional failure. Also, a quantitative time history of reinforcing steel condition can be used to make decisions on rehabilitation, decommissioning, or replacement. The self-magnetic behavior of ferromagnetic materials is useful for quantitative condition assessment. In this study, a ferromagnetic rebar with artificial defects was scanned by a three-dimensional (3D) laser scanner. The obtained point cloud was imported as a real geometry to a finite element software platform; its self-magnetic behavior was then simulated under the influence of Earth’s magnetic field. The various passive magnetic parameters that can be measured were reviewed for different conditions. Statistical studies showed that 0.76% of the simulation-obtained data of the rebar surface was related to the defect locations. Additionally, acceptable coincidences were confirmed between the magnetic properties from numerical simulation and from experimental outputs, most noticeably at hole locations.