RAA Residential Appraisal Report Writing

Question 1

Which appraisal report form is most commonly used for single-family residential properties being financed by Fannie Mae or Freddie Mac?

Accepted Answer

URAR (Uniform Residential Appraisal Report) Form 1004

Answer

Form 1073 (Individual Condominium Unit Appraisal Report)

Answer

Form 2055 (Exterior-Only Inspection Residential Appraisal Report)

Answer

Form 1025 (Small Residential Income Property Appraisal Report)

Question 2

Under USPAP, which type of appraisal report provides the least amount of detail and is only appropriate when the client and intended users do not need a detailed explanation?

Accepted Answer

Restricted Use Appraisal Report

Answer

Self-Contained Report

Answer

Summary Report

Answer

Desktop Appraisal Report

Question 3

When completing an appraisal report, the 'Neighborhood' section requires the appraiser to identify the neighborhood boundaries. What is the primary purpose of defining neighborhood boundaries?

Accepted Answer

To identify the geographic area from which comparable sales are drawn

Answer

To satisfy legal requirements for boundary disclosure

Answer

To determine the applicable zoning classifications

Answer

To establish the tax assessment district for the subject property

Question 4

In a Uniform Residential Appraisal Report (Form 1004), the 'Contract' section requires the appraiser to analyze the sales contract. Which of the following is the appraiser required to comment on if it exists?

Accepted Answer

Seller concessions and their effect on value

Answer

The buyer's credit history and debt-to-income ratio

Answer

The lender's underwriting guidelines and loan terms

Answer

The title insurance commitment and exceptions

Question 5

Which section of the Form 1004 requires the appraiser to reconcile the indicated values from the approaches used and provide a final opinion of value?

Accepted Answer

Reconciliation section

Answer

Market Conditions Addendum (Form 1004MC)

Answer

Sales Comparison Approach grid

Answer

Improvements section

Question 6

When an appraiser uses an extraordinary assumption in an appraisal report, what must be included in the report according to USPAP?

Accepted Answer

A clear statement of the assumption and how it might affect the value if found to be false

Answer

A separate signed addendum approved by the client

Answer

A second opinion from another certified appraiser

Answer

A notice to the state appraisal board within 10 business days

Question 7

The Market Conditions Addendum (Form 1004MC) was developed primarily to provide additional information about which aspect of the market?

Accepted Answer

Current listing inventory and price trends over the prior 12 months

Answer

Zoning changes and future development plans in the neighborhood

Answer

The subject property's rental income potential and cap rate

Answer

Flood zone status and environmental hazard disclosures