Test Appraisal Form - FNMA 1025 Small Residential Income Property Appraisal Report (Test Form 1025) Use of Test Form 1025: The lender uses this form to obtain the appraiser's analysis and opinion of market value for transaction that is secured by a two- to four-family 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 the copy. The report form provides a concise format to report the appraiser's analysis, opinions and conclusions. The appraiser is required to, at a minimum (1) perform an on-site inspection of the interior and exterior of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from the street, (4) collect, confirm, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. The valuation process includes current listing, rental and sales comparables; however, the same properties do not have to be used as both a rental and a sale comparable. 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. Units of Comparison: The appraiser must develop and analyze appropriate units of comparison including price per unit, price per room, price per bedroom, value per square foot of gross building area, and the value per the gross rent multiplier to arrive at a supportable opinion of market value. The appraiser should indicate in his or her market data analysis (or in an addendum to the appraisal report form) the adjustments that were made, explain the reasons for each adjustment, and note which indicators were given the most weight. Rent Forecasts: The appraiser must comment on how well the rent comparables compare to the subject property. He or she should also note and explain any adjustments that were made to arrive at the gross monthly forecasted rent (unfurnished) for the subject property. When estimating stabilized or forecasted rents, the appraiser must base his or her estimate on the level of rents currently obtainable on the effective date of the appraisal, and must not use a projection of future rent values. | 
