RAA Residential Appraisal Report Writing 1

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

The URAR Form 1004 is the standard form required by Fannie Mae and Freddie Mac for single-family residential appraisals with interior inspections.

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

A Restricted Use Appraisal Report contains the least detail and is only appropriate for a single client who does not intend to share the report with third parties.

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

Defining neighborhood boundaries helps identify the geographic market area from which comparable sales and market data should be drawn to ensure relevant comparisons.

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 appraiser must analyze and report on seller concessions because they can artificially inflate the contract price, affecting the appraiser's opinion of market value.

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

The Reconciliation section is where the appraiser weighs the reliability and applicability of each approach used and arrives at a final, supported opinion of value.

(RAA) Certified Residential Accredited Appraiser Practice Test

(RAA) Certified Residential Accredited Appraiser Practice Test

RAA Residential Appraisal Report Writing 1