Module 14

Question 1

latest version of the URAR form

Answer 1

(Fannie Mae Form 1004, March 2005)

Question 2

Form 1004D

Answer 2

Appraisal Update and/or Completion Report

Question 3

Form 2055

Answer 3

Exterior Inspection Only Residential Appraisal Report

Question 4

most commercial appraisals involve

Answer 4

narrative reports.

Question 5

he current version of the URAR form was designed by

Answer 5

Fannie Mae

specifically to be used for appraisals that support loan packages to be sold in the secondary market.

Question 6

Agencies such as HUD, FHA, and VA may continue to use the old form for residential valuation

Answer 6

If the intended use of your appraisal is for anything other than Fannie Mae, you should (and will want to) continue to use the previous version.

Question 7

There are 11 sections in the URAR form.

Answer 7

11

Question 8

With most appraisals, the effective date used is

Answer 8

the date of inspection

Question 9

The principle of ______ contends that properties generally have a higher value and greater marketability when their size, topography, and other site conditions are similar to other properties in the market area.

Answer 9

principle of conformity

Question 10

If the site was irregular, you would

Answer 10

need to attach an addendum containing a sketch of the site

Question 11

ypically, appraisers will identify whether or not the site is a corner lot by using

Answer 11

the blank comments area in the “Site” section

Question 12

The legally permitted uses of a site make up its

Answer 12

general use.

Question 13

Form 1025

Answer 13

small Residential Income Property Appraisal Report

Question 14

Density of use. Questions to determine density of use include

Answer 14

How many units are permitted?
ƒ Can the units be clustered?
ƒ Are green belts permitted or required?

Question 15

Specific requirements

Answer 15

Possibilities include setback, building height

restrictions, lot coverage ratios, parking restrictions, and sign regulations.

Question 16

Nonconforming

Answer 16

ou must identify whether the current use complies with
the zoning for the site.
ƒ A “grandfathered use” means that the use is nonconforming to the
current zoning. However it is permitted and thus it is a legal use.
You must investigate zoning rules regarding the ability to rebuild
the current improvements in the event they are substantially
damaged (such as in the case of a fire or flooding).
ƒ If the current use is illegal, you must find out the specific
conditions that would make the property legally conforming to the
zoning ordinance. Conformity might not be financially feasible.

Question 17

Highest and best use as improved.

Answer 17

You must comment if another highest and

best use is indicated rather than its present use

Question 18

Site characteristics

Answer 18

Use descriptive terms to identify the characteristics of

shape, view, orientation, and topography.

Question 19

Comments in the Site section

Answer 19

Use the blank lines at the bottom of the Site section to discuss relevant
site and land issues that a client might want to know.
ƒ Adverse site conditions or external factors
ƒ Special assessments, easements, and encroachments
ƒ Private well and septic systems, cisterns, and drainage pond on site
ƒ Steep grades, slide areas, soil and drainage conditions
ƒ Special views (favorable and unfavorable)
ƒ Orientation (south-facing site may be preferable in some areas)
ƒ Flooding potential (property is within a designated flood zone)
ƒ Zoning issues such as illegal or legal nonconforming zoning uses
and highest and best use issues

Question 20

Avoid “canned” comments used as filler such as

Answer 20

“no apparent adverse
conditions noted.” Lending clients find these statements to be of little
value. If no comments are necessary, then simply state “none.”

Question 21

high-performance properties are more adequately described using

Answer 21

e Appraisal Institute’s Residential Green and Energy Efficient Addendum (Links to an external site.) report form (820.04).

Question 22

Units

Answer 22

This is specific to all levels above grade. This heading permits only a one-family or one family with an accessory unit to be appraised

Question 23

Detached.

Answer 23

The subject is a detached (free-standing) single-family residence. An example of an attached residence might be a townhome or patio home that has shared (common) party walls.

Question 24

Existing

Answer 24

Our subject is an existing residence, as opposed to being proposed or currently under construction.

Question 25

Design (style).

Answer 25

It is best to stick to the basics, such as one-story, two-story, four-level split, etc., and stay away from terminology such as “Pennsylvania Dutch colonial” or “brownstone” which may have multiple interpretations in various parts of the country.

Question 26

Year Built

Answer 26

Provide the chronological age rather than the year built. This makes it easy for the client to compare actual age and effective age

Question 27

Attic

Answer 27

Our subject has an attic that is accessible from a scuttle (an opening in the ceiling without stairs).

Question 28

The “Basement Finish”

Answer 28

is normally entered as a percentage

Question 29

Window Type. If there are a variety of window types in one residence

Answer 29

choose the predominant type and list it on the form. Some of the more common window types are casement windows, which have cranks to open both sides from the center; double hung windows which have both the upper and lower sections that can slide up or down; and awning windows, where the entire window opens in an outward direction from the bottom.

Question 30

The finished area above grade is asking for

Answer 30

above-grade room count. Place the actual number of rooms (not the dimensions or area size) in each room space.

Question 31

If the R-values of the insulation are known (e.g., new construction), that data can be placed in the spaces. Otherwise,

Answer 31

use terms such as good, average, or poor.

Question 32

Adverse physical deficiencies: Be aware of the 3-S Rule

Answer 32

Safety, Soundness, and Security.

Question 33

he Fannie Mae Form 1004 that we have been discussing is not designed to be used in

Answer 33

appraising manufactured housing

Question 34

Did you know that there hasn’t been a mobile home built in the United States since

Answer 34

June 15, 1976? Today, a factory-built housing includes manufactured homes, modular homes, and other types of prefabricated, panelized, or sectional housing

Question 35

The housing must be legally classified as real estate (not personal property)

Answer 35

The towing hitch, wheels, and axles must be removed and the dwelling must assume the characteristics of site-built housing.

Question 36

What unit of comparison is appropriate in the appraisal of a hotel?

Answer 36

D. price per guest room

Question 37

Which type of market would provide the best market conditions for an appraiser to
employ the sales comparison approach?

Answer 37

active market

Question 38

What type of factory-built structure must have a HUD seal affi xed to the exterior?

Answer 38

manufactured home

Question 39

A buyer paid more for a property because he was uninformed about the cost to
petition for a zoning change. What element of comparison would this fall under?

Answer 39

expenditure made immediately after purchase

Question 40

Lenders concerned about adverse conditions affecting a property may require
appraisers to apply the 3-S Rule, which stands for

Answer 40

A. safety, soundness, and security.

Question 41

Which of the following is true regarding room counts?

Answer 41

bedrooms and baths are included
special rooms such as foyer, laundry room, and dinette are excluded
only above grade rooms are included
all of these answers

Question 42

The effect on value produced by a property’s location at or near the intersection of two streets is known as

Answer 42

corner influence.
Corner influence is the effect on the value produced by a property’s location at or near the intersection of two streets or the increment of value or loss in value, resulting from this location or proximity.

Question 43

For an appraiser to appraise manufactured housing, it must

Answer 43

be legally classified as real estate (not personal property).
assume the characteristics of site-built housing.
be all of these answers.
have the towing hitch, wheels, and axles removed.

Question 44

Which of the following would be an acceptable way of describing the boundaries of an irregular shaped lot?

Answer 44

The lot is 80 x 160 x 95 x 200.
The lot is triangular in shape and contains approximately 2.51 acres.
The lot is very irregular in shape. Please refer to the attached sketch.
All of these answers are correct.

Question 45

Where do appraisers generally obtain site size information for residential properties?

Answer 45

county tax assessor’s office
Site size information is often obtained from the county tax assessor’s office or another source of legal record. Data service providers sometimes provide this information as well. Regardless of the source, the appraiser should verify it and make an effort to determine the site size.

Question 46

What is the effective age?

Answer 46

the appraiser’s opinion

Question 47

The use of the cost approach and the income approach are

Answer 47

not required by Fannie Mae.