When performing appraisals, it’s important to be equipped with products that will get the job done right. There are numerous scenarios involving regulations, service requirements and the needs of clients which would entail the use of certain products that would fit with the given circumstances. Here is a list of the top real estate products based on what properties they are used for:
FNMA 1004 – Uniform Residential Appraisal Report
This is one of the most widely used forms, if not the most, in real estate appraisal and is typically employed to report appraisals of one-unit properties with or without accessory units, including those in planned unit developments (PUD). The form allows an appraiser to record observations based on a complete interior/exterior inspection of the subject property, an inspection of the comparable sales and surrounding neighborhood, and a summary of his or her own analysis, opinions and conclusions.
FNMA 1073 – Individual Condominium Unit Appraisal Report
This report is designed for the appraisal of one-unit properties in condo projects based on interior and exterior inspections. It is similar to the 1004 Form only it comes with additional condo-specific questions.
FNMA 1004C -Manufactured Home Appraisal Report
The 1004C form is used to report the appraisal of one-unit manufactured homes, including those in a PUD based on an interior and exterior inspection of the subject property. Manufactured homes in either a condominium or cooperative project requires the appraiser to complete the project information section of either the Individual Condominium Unit Appraisal Report or Individual Cooperative Interest Appraisal.
Appraisal Risk Review (ARR)
Appraisal Risk Review or ARR ensures that purchased loans are not a regulatory or financial liability and maintains positive credit risk expectations at the same time. It provides an easy-to-read summary with risk flags and recommended next steps when it comes to confirming an appraisal and appraiser’s credibility.
Automated Valuation Model (AVM)
Automated Valuation Model or AVM is a service that uses mathematical modeling combined with databases of existing properties to calculate real estate values. They are primarily used for determining the value of residential properties and are driven by technology, including proprietary algorithms and can be retrieved by lenders and agents in seconds.
Broker Price Opinion (BPO)
This is the estimated value of a property as determined by a real estate broker or other qualified individual or firm. A BPO is based on the characteristics of the property being considered and serve as concise alternatives to a comparative market analysis.