Appraisal Form - URAR - FHLMC 70 and FNMA 1004 Single Family Residential appraisal form. This is the most common appraisal report form and is a full appraisal analysis including all three of the approaches to market value.
Uniform Residential Appraisal Report (Form 1004) Use of Form 1004:
The lender uses this form to obtain the appraiser's analysis and estimate of the value of single-family properties and PUD units that secure conventional first or second mortgages. This form may also be used for detached condominium units in projects that consist solely of detached dwellings and have no common area improvements (other than greenbelts, private streets, and parking areas), as long as the appraiser includes certain project information on the form (or in an addendum to it). It may also be used for two-family properties if each of the units is occupied as a principal residence by one of the co-borrowers or if the value of the second unit is relatively insignificant in relation to the total value of the property.
This form must be printed on legal size paper, using portrait format. When printing this form, you must use the "shrink to fit" option in the Adobe Acrobat print dialogue box.
Instructions:
This form is completed in its entirety by the appraiser. The lender should retain the original of the completed form, and the appraiser should retain a copy.
The Uniform Standards of Professional Appraisal Practice requires appraisers to identify their appraisal reports as a self-contained report, a summary report, or a restricted report by stating the applicable category at or near the beginning of the appraisal report form. The Appraisal Standards Board has expressed the opinion that Form 1004 is consistent with a summary appraisal report. Therefore, the appraiser should identify all appraisals reported on this form as summary appraisal reports.
The appraiser must provide his or her description and analysis of the neighborhood, site, and improvements. The appraiser must provide the lender with an adequately supported estimate of market value and a complete, accurate description of the property. The sales comparison analysis should include as comparables three other properties, and should provide specific sales or financing concession information for the comparables. In addition, the appraiser must attach the standard required exhibits listed in the Selling Guide--including the Statement of Limiting Conditions and Appraiser's Certification (Form 1004B)--to support each appraisal report.
PUD Units:
If the appraiser uses this form to document the appraisal for a PUD unit, he or she must complete the "Project Information for PUDs" section that immediately follows the "neighborhood" section of the form. Generally, there should be no need to attach an addendum to the form for appraisals of units in established PUD projects. However, it may still be necessary to use an addendum if the appraisal relates to units in a new PUD project for which the developer is still in control of the owners' association.
Detached Condominium Units:
If the appraiser uses this form to document the appraisal for a detached condominium unit in a project that consists solely of detached dwellings, he or she must provide the following project information on Form 1004 or in an addendum to it: > If the project has been completed: number of phases ______ , number of units ______, and number of units sold ______ ;
> If the project is incomplete: planned number of phases ______ , number of units ______ , and number of units sold ______ ;
> If the project is being developed in phases: total units in subject phase ______ , number of completed units ______ , number of sold units ______ , and number of rented units ______ ;
> A description of the common elements or recreational facilities;
> Owners' association fees per month for the subject unit: $ ______ ;
> The utilities that are included in the owners' association fees;
> A comment about whether the unit's owners' association fees are reasonable in comparison to those for units in other projects of similar quality and design; and
> A comment about whether the project appears to be well-maintained.
Two-Family Properties:
The appraiser may use Form 1004 to document the appraisal for a two-family property if the value of the second unit is relatively insignificant in relation to the total value of the property. For example, if a two-family property consists of a legal basement rental unit and an owner-occupied main unit--and the property is located in a neighborhood in which rental basement units are commonly found--use of the Form 1004 is appropriate when the value of the basement unit is relatively insignificant. This is because the appraiser generally places more emphasis on the sales comparison analysis approach to value rather than on the income approach to value that typically is used for most rental properties.
The appraiser may also use Form 1004 if each unit of a two-family property is occupied as a principal residence by one of the co-borrowers. |
