Appraisal Report Types
The FNMA Form 1004, also known as the URAR (Uniform Residential Appraisal Report), is designed for the appraisal of a single family residential property, a single family residential property with an accessory unit (small in-law apartment, home office or other as defined in the FNMA Mortgage Lending Guidelines). This type of report is to be used exclusively for mortgage lending, servicing and portfolio management uses by the mortgage lending industry. Report and inspection is completed to comply with the FHA / HUD guidelines.
This appraisal type includes a complete interior and exterior inspection of the subject property and an exterior inspection of the comparable sales. This form is not to be used for a small 2 -4 family property, condominium or cooperative unit or an individual mobile home unit (follow links to see these types of report types).
Following is a list of the typical contents of this appraisal report form type.
- Title Page - Identifying the subject property and including a front photograph.
- Appraisal Form URAR (1004)
- Page 1 - Description of neighborhood, subject site and subject improvements.
- Page 2 - Sales Comparison Approach (3 comparable sales) and Income Approach (if applicable) to values, effective date of appraisal, repair or other conditions of appraisal and value reconciliation.
- Page 3 - Additional comments, details of market conditions, details of repair conditions, Cost Approach to value with estimated land value (if applicable).
- Comparable Sales #4, #5 and #6 - When selected as appropriate to report by the appraiser, or requested by the client (see options noted below).
- Sketch - Subject property sketch, showing the calculations, and including attached amenities and detached structures on the same subject site.
- Builders Floor Plan - for new or newer construction, when made available to the appraiser.
- Location Map - Showing the subject property and comparable sales.
- Subject Photographs
- Exterior photographs of the subject property including; front, rear and street scene.
- Exterior photographs of the subject property amenities such as; pool, cabanas, outbuildings, yard views and potential deficiencies noted (as contracted by the client engagement request).
- Interior photographs of the subject property showing sampling of rooms, mechanical systems, recent improvements and potential deficiencies (as contracted by the client engagement request).
- Comparable Sales Photographs - Photograph of the comparable sale from a public street.
- Additional Appraisal Content
- Scope of the Appraisal - Discussion of the appraisal process, due diligence and limitations.
- Intended Use - Identifies the intended use of the report (mortgage finance).
- Intended User - Identifies the intended user of the report (lender/client).
- Definition of Market Value - state defines the Market Value definition used in the report.
- Statement of Assumptions and Limiting Conditions
- Appraisers Certification
Optional Additional Appraisal Report Content
This is a brief list of additional services that can be added to the basic report discussed above, for an additional fee, as engaged by the requesting client.
- Additional Comparable Sales (sold comps, listing or pending sales) - as required by the client at the time of engagement or upon subsequent request.
- FNMA Form1004D - Summary Appraisal Update and/or Certification of Completion - This form is to be used to update an appraisal to the current market. This form can also be used to certify the completion of required repairs. This report must be completed by the original appraiser/appraisal firm.
- FNMA Form 1007 Single Family Rent Schedule - This form is used to develop and analyze comparable rental properties to the subject property to arrive at an indication of the Fair Market Rent. To be used for single family properties.
- FNMA Form 216 Operating Income Statement - This form is used to analyze the income and expense projections for the subject property. To be used for 1 - 4 family properties.