A Uniform Residential Appraisal Report or URAR is one of the most common forms used in real estate appraisal

Real estate appraisal

Real estate appraisal, property valuation or land valuation is the process of valuing real property. The value usually sought is the property's Market Value. Appraisals are needed because compared to, say, corporate stock, real estate transactions occur very infrequently...

 which was created to allow for standard reporting and analysis of single family dwellings or single family dwellings with an "accessory unit". It is also suitable for a building in a planned unit development (PUD) but is not meant to be used for appraisals of manufactured homes or condos.

The most current incarnation of the URAR is the "Fannie Mae Form 1004"updated for March 2005. It is considered a full appraisal with all three approaches to value, cost approach

Cost approach

In real estate appraisal, the cost approach is one of three basic valuation methods. The others are market, or sale comparison, and income. The fundamental premise of the cost approach is that a potential user of real estate won't, or shouldn't, pay more for a property than it would cost to build...

, sales comparison approach

Sales comparison approach

The sales comparison approach is one of the three major groupings of valuation methods, called the three approaches to value, commonly used in real estate appraisal. This approach compares a subject property's characteristics with those of comparable properties which have recently sold in similar...

, and income approach

Income approach

The Income Approach is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities...

.

Requirements

• The report requires an interior and exterior inspection of the subject property.

• A street map that shows the location of the subject property and of all comparable properties that the appraiser used.

• An exterior building sketch of the improvements that indicates the dimensions.

• Clear, descriptive photographs of the subject property and comparable sales used.

Parts of the URAR

Some of the sections of a URAR include but are not limited to:

• Subject: Basic information such as the address, legal description, owner's and/or borrower's names. The client is also identified here.

• Contract: Information on the contract for sale is entered here for appraisals in which a change of ownership is about to occur.

• Site: Data on the size, shape, zoning and access to utilities as well as FEMA flood-zone information

• Improvements: Physical characteristics of the property such as age, materials, and condition

• Sales comparison approach: The grid analysis, this is where the property being appraised is compared to recent sales of other properties.