Uniform Residential Appraisal Report Overview

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Questions and Answers

What does the term 'Depreciated Cost of Improvements' refer to?

Cost of land acquisition only

Cost of improvements reduced by depreciation (correct)

The total cost of new construction

Market value of the property after completion

In the Income Approach to Value, what is multiplied by the Gross Rent Multiplier to determine the indicated value?

Estimated Monthly Market Rent (correct)

Net income from property

Total operating expenses

Estimated Annual Market Rent

What information is required for properties under development in a PUD if the developer controls the HOA?

Renovation history of the property

Market analysis of neighborhood

Estimated Monthly Gross Rent

Unit types and HOA control status (correct)

What is indicated by the 'Estimated Remaining Economic Life' in the context provided?

Projected duration before significant deterioration Signup and view all the answers

What does the term 'Physical Functional External Depreciation' refer to?

The market value decline due to poor location Signup and view all the answers

What type of foundation is mentioned in the content?

Crawl Space Signup and view all the answers

Which type of heating system is listed in the document?

FWA Signup and view all the answers

What evidence of damage is asked about regarding site conditions?

Pest Infestation Signup and view all the answers

What type of exterior walls are referenced in the inspection content?

Wood Frame Signup and view all the answers

Which type of cooling system is mentioned?

Central Air Conditioning Signup and view all the answers

What is the minimum requirement for the appraiser regarding the inspection of the property?

Perform a complete visual inspection of both interior and exterior areas. Signup and view all the answers

What is the intended use of the appraisal report?

For the lender/client to evaluate the property for a mortgage finance transaction. Signup and view all the answers

Which of the following best defines market value?

The most probable price a property should bring under competitive and open market conditions. Signup and view all the answers

Which statement about the definition of market value is NOT true?

The sale must involve undue stimuli. Signup and view all the answers

What type of data must the appraiser research and analyze?

Data from reliable public and/or private sources. Signup and view all the answers

What must adjustments to comparables reflect?

Special or creative financing or sales concessions. Signup and view all the answers

For which party is the appraisal report primarily intended?

The lender/client evaluating the property. Signup and view all the answers

What does the appraiser certify regarding the inspection performed?

A complete visual inspection was performed. Signup and view all the answers

What is the appraiser's responsibility concerning hazardous materials?

To disclose they are not an expert in environmental hazards. Signup and view all the answers

What foundation types are listed in the content?

Concrete Slab and Crawl Space Signup and view all the answers

Which of the following heating systems is identified in the content?

Hot Water Baseboard Signup and view all the answers

What evidence of environmental conditions might affect the site?

Easements and Encroachments Signup and view all the answers

What type of window is referenced in the inspection content?

Insulated Storm Sash Signup and view all the answers

Which type of cooling system is featured in the content?

Central Air Conditioning Signup and view all the answers

Study Notes

Uniform Residential Appraisal Report

The report provides an opinion of market value for a property.
The purpose is to give an accurate and adequately supported market value to the lender/client.
Information includes property address, borrower, legal description, assessor's parcel number, neighborhood name, owner/tenant information, property rights, and lender/client details.
Data sources for the report are important and should be included.
Sale price and date is crucial.
Financial assistance, if any, must be specified.
Race and racial composition of neighborhoods are not factors.
Neighborhood characteristics include land use, property values trends, growth, marketing time, and neighborhood boundaries.
Market conditions are explained in detail, supporting conclusions.
Specific zoning classifications, area, zoning description, zoning compliance, and utilities are included.
FEMA flood zone data are required.
Utilities, off-site improvements, and adverse site conditions (easements, encroachments, environmental conditions, land uses, etc.) are documented.
General description of the property's foundation, units, stories, basement type and area, exterior walls, roof surface, floors, walls, trim/finish, year built, infestation, storm sash, car storage, and effective age are included.
The condition, needed repairs, deterioration, renovations, and remodeling, are described.
Cooling, fireplace, patio, fence, and garage details are available.
Number of bedrooms, bathrooms, and square footage of living areas above grade are noted.
Physical deficiencies, adverse conditions affecting livability, soundness, or structural integrity are described.
Conformity to neighborhood standards (use, construction) is noted.
Data from comparable properties (Sale Price, proximity, Data sources etc) are compiled for analysis.
The sale or financing concessions are considered.
Sale date, locale, leasehold/fee simple, site, view, design style, quality of construction, and condition are analyzed.
Information about rooms, heating/cooling, and energy-efficient features
There is a discussion on prior sale/transfer history for the subject and comparable properties
There is an analysis of prior sales and transfers of the subject property.
There are different approaches and calculations to determine value.
Cost, sales comparison, and income approaches are considered.
Reproduction or replacement cost new, depreciation, site value, monthly rent, and gross rent multiplier are included in the cost analysis.
Project information (for PUDs) such as if the developer controls the HOA, unit types, and number of units are included where applicable.
Comments about common elements and recreational facilities, project details (number of units etc) are documented.
Scope of work, use, intended user, and definition of market value are included.
Assumptions and limiting conditions for the appraisal are presented.
Appraiser's certification details credentials, conditions, and opinions, and their adherence to the standards.
Supervisory appraiser certification discusses supervision, analysis, opinions, compliance with standards, and whether the appraiser is a subcontractor or employee. The supervisory appraiser's certification is also complete and includes relevant information and details.
The report may be disclosed or distributed to various parties without appraiser consent.
Disclosures related to laws are addressed.
The report may be used in mortgage finance transactions.
The report may be transmitted electronically.
Legal provisions about appraisal reports and disclosure are addressed.

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Description

This quiz covers the essential components of a Uniform Residential Appraisal Report, detailing its purpose, necessary data, and neighborhood characteristics. Understand the importance of market value, data sources, and zoning classifications in real estate appraisal. Test your knowledge on how various factors like financial assistance, market conditions, and utilities affect property appraisal.