The Uniform Residential Appraisal Report (URAR) is one of the most commonly used forms in real estate appraisal. It was designed to provide a standardized format for reporting and analyzing single-family properties, including single-family homes with an additional unit. While it is suitable for buildings within a Planned Unit Development (PUD), it is not intended for appraising mobile homes or condominiums.

The most current incarnation of the URAR is the Fannie Mae Form 1004 refreshed for March 2005. It is viewed as a full evaluation with each of the three ways to deal with value, cost approach, sales correlation approach, and income approach.

An appraisal might come back lower than the listing price. At this point the seller and buyer goes back to the negotiating table. The seller might not choose to lower the value and cancel the contract or vice versa. The buyer has the option to take the property as is, but the buyer will have to come up with the difference in price usually in cash. The lender might not even approve the transaction either because of the amendatory clauses in the purchase agreement. Therefore, the appraisal is important because you really don’t want to pay more than what a property is worth. Hence the term ″buy low, sell high.″

Prerequisites

• The report requires an inside and outside review of the subject property.
• A road delineate demonstrates the area of the subject property and of every practically identical property that the appraiser utilized.
• An outside building portrayal of the changes that shows the measurements.
• Clear, elucidating photos of the subject property and equivalent deals utilized.

The appraisal determines the value of the property based on comparable market reports of recently sold properties in the area. Also, taken into consideration is the pending sales, active listings, foreclosure closed sales and short sales. Finally, the square footage, the total amount of rooms, and some property improvements are taken into consideration.