The following is a list of the most commonly ordered single and multi-family appraisal products. We invite you to contact any member of our service team if you have any question or need further clarification on our appraisal products.
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This is the most commonly used report, known within the industry as the URAR, and is completed on FNMA form 1004. This appraisal report requires a full interior & exterior inspection of the subject property. The URAR report includes the following supplements: subject property photos including front, rear, street scene, kitchen, main living area, bathrooms, and any amenities substantially affecting marketability and/or value, comparable sales photos, flood map if property is located in a FEMA flood hazard zone, a floor plan sketch with exterior dimensions and gross living area calculations, location map showing accurate locations of the subject and all comparables employed in the report as well as relevant certifications and limiting conditions.
This report format is typically requested by lenders when financing single family rental homes. The inspection, reporting, and supplemental documents are similar in all respects to the standard Single-Family Uniform Residential Appraisal Report with the following additions: A completed Single Family Rent Schedule (form 1007) and an Operating Income Statement (form 216).
Manufactured home appraisals are reported on FNMA form 1004C. Form 1004C requires the appraiser to complete a full interior & exterior inspection of the subject property, report neighborhood boundaries & characteristics, analyze market trends, consider site characteristics, complete cost approach, and report a variety of details of the manufactured home from the HUD date plate and certification label(s).
FHA compliant appraisals are requested when lenders are making loan to be secured by the Federal Housing Administration. Each FHA appraisal report must include a unique FHA case number in the upper right hand corner of each page that is assigned by the lender and obtained through the FHA Connection website. FHA appraisals are valid for 120 days. The form and supplemental attachments are similar to a typical single family URAR. The inspection and reporting comments are slightly more extensive than for purposes of a conventional loan. Additionally, the FHA mandates that the appraiser pay specific attention to certain property conditions they feel are potentially hazardous to the health and/or safety of the occupants. Within the body of the report, or in the narrative addendum, the appraiser will describe any readily observable property condition that can be construed as a health/safety hazard, per FHA’s guidelines. If the property is found to have potential health and safety issues, an FHA report may be completed “subject to” correction of the issue (if it’s an obvious hazard), or “as is” with a complete description of the noted issue, leaving it up to the lender’s (DE Underwriter) discretion to determine if further action is required.
Condominium appraisals completed for conventional and FHA loans are reported on the Individual Condominium Unit Appraisal Report (Form 1073) and comply with USPAP, and any client specific guidelines. A full interior and exterior inspection of the subject unit is made and a summary analysis of the condo project and market are provided. Attachments comparable to those included with the single-family residential report are also included in the condominium report. Non-owner-occupied unit appraisals include a completed rent schedule (Form 1007) and operating income statement (Form 216).
Appraisals of two-to-four unit residential properties are reported on the Small Residential Income Property Appraisal Report. This report provides an income analysis based on comparable rental properties, cost approach, and the sales comparison analysis. Included in the attachments is a completed operating income statement (Form 216). Additional supplemental documents include photographs of the front, rear, kitchen, bathrooms, street scene, and main living area. Photographs of comparable sales & rentals are also included as well as a location map detailing the locations of the subject and all rentals and sales utilized in the report, a floor-plan sketch with exterior dimensions and gross living area calculations for each unit and appropriate certifications and limiting conditions.
When Cooperative Units are appraised, they are reported on the Individual Cooperative Interest Appraisal Report. A full interior and exterior inspection of the subject unit & project is made and summary analysis of the project is reported. The appraisers reports the number of shares attributable to the subject unit, maintenance fees, total shares outstanding for the project and blanket financing information. Underlying mortgage information is also a component considered. Once complete, a cooperative appraisal includes a sketch showing interior unit dimensions and gross living area calculations, interior subject photographs, exterior subject photographs and project amenities, photographs of the exterior of each comparable sale, a map detailing the location of the subject and all comparable sales considered in the report and appropriate certifications & limiting conditions.
Appraisals are commonly completed for distressed properties including foreclosure and real estate-owned (REO) purposes. These appraisals are typically reported on the form applicable to the type of property being appraised (ie. Form 1073 for a condo). REO reports generally have several other additional objectives; to determine estimate of market value based on the present condition of the subject improvements, frequently under normal and liquidation marketing times. Marketing time assumptions will be clearly defined in the final report and may not match the standard definition of market value included in USPAP. REO appraisals typically include a separate attachment detailing a list of repairs, and their respective costs, necessary to bring the subject improvements into an overall condition that will optimize marketability and value. Estimates of market value may also be based on normal market conditions existing as of the effective date of appraisal, as well as a value estimate made under a restricted marketing period, as defined in the final report. Standard REO appraisal reports include interior and exterior photographs of the subject improvements, photographs detailing areas of special concern with the subject improvements, standard front, rear, and street scene photographs of the subject property, photographs of all sales utilized within the report, a floor plan sketch with exterior dimensions, an itemized list of recommended repairs, with estimated costs to complete each item, a map detailing the location of the subject and all sales utilized in the report, appropriate certifications & limiting conditions.
The exterior-only appraisal is a USPAP compliant appraisal report that is based on an exterior-only inspection of a single family detached, attached, planned unit development (PUD) property. Form 2055 is to be used in appraising a single family property or a single family property with an accessory unit and is less reliable by nature when compared to a full interior & exterior valuation. This form is not to be used with a manufactured home, condominium or cooperative. The report includes the appropriate approaches to value, front & street scene photos, photos of comparable properties employed in Sales Comparison Approach, location map showing proximity of comparables to the subject property, as well as appropriate certifications and limiting conditions.
The exterior-only condo appraisal form is used for appraisals of individual condominium units. This six page form complies with the Uniform Standards of Professional Appraisal Practice (USPAP), is based on a visual exterior inspection only, and is less reliable by nature when compared to a full interior inspection condo appraisal (Form 1073). This product includes summary information regarding the project & market, photos of the front and street scene, photos of the comparables utilized in the report, as well as appropriate certifications and limiting conditions.
Form 2095 is used for Exterior-only appraisals of individual co-op units. This six page form complies with the Uniform Standards of Professional Appraisal Practice (USPAP) although is less reliable by nature than Form 2090 which includes an interior inspection of the premises. This form may not be used in valuing a manufactured home or a unit in a condominium project. The Exterior-only Co-op form includes an analysis of the project and the market, appropriate photographs, a value opinion, as well as appropriate certifications and limiting conditions.
Co-ops are a unique property type. Valuation of co-ops requires valuing the cooperative interest (the co-op shares or other evidence of an ownership interest in the cooperative corporation and the accompanying occupancy rights (normally a proprietary lease). The value of the underlying blanket mortgage is excluded. When appraising a unit in a cooperative project, the appraiser should use the Sales Comparison Analysis and consider the Income Approach to value. Because of common building components and development improvements, the Cost Approach is not used in the valuation of an individual co-op unit.
Exterior-only property inspection reports are reported on form 2075 and should be considered an evaluation of the property’s marketability rather than its valuation. This form is used by lenders as a brief analysis of current market conditions within the neighborhood, as well as summary reporting on the observed condition of the subject site and improvements. No estimate of value is provided by the appraiser. The completed report includes front and street scene photographs of the subject property, and a map detailing the location of the subject property.
The single family rent schedule is used to estimate market rent by the appraiser. Typically the appraiser analyzes three rental properties that share or bracket significant rental characteristics with the subject property. Form 1007 is commonly requested by lenders when loans are being made on non-owner occupied properties.
The operating income statement is used by appraisers to estimate net income when appraising one-to-four unit investment properties. Form 216 deducts common expenses including vacancy loss estimates from gross income to establish an estimate of net income.
Form 1004D is used for two entirely different purposes:
1) The top portion of the form, the Summary Appraisal Update Repot, may be used in certain circumstances to extend the ‘life’ of an appraisal from 120 to 180 days. When approved for use for this purpose, the appraiser must complete an exterior visually re-inspection of subject property, as well as research all market trends and data that have occurred since the original appraisal inspection date. Ultimately, the appraiser must either indicate that the original value assigned to the subject property has not decreased or indicate that he/she is unable to concur with the original value estimate. The Summary Appraisal Update Report includes front and street scene photos of the subject property, a statement summarizing the type/extent of research conducted, and often includes an analysis of additional comparable data that may have occurred or been considered to validate the appraisers’ opinion.
2) The lower portion of the form is a Certificate of Completion and is used to indicate the status of “subject to” requirements. This form is normally ordered by lenders after all appraisal-required repairs are complete or construction of a new home is fully complete. The appraiser must make a statement that improvements have been completed in accordance with the requirements and conditions stated in the original appraisal report. (Or, if not, impact on market value must be stated.) Required exhibits include front & street scene photos as well as photos of the completed improvements. (If the original appraisal was subject to installation of a new water heater, a photo of this item should be included.)
The Market Conditions addendum is used by the appraiser to better assess trends over the past 12 months of sales and listings of properties that are comparable to the subject property. The 1004MC form is included with our normal instructions and fee quotes for single family and multi-family appraisal orders.