Appraisal Review

There are four home appraisal types for the mortgage loan process. The four types are the full appraisal, exterior-only appraisal, the rental analysis, and the broker price opinion.

Residential Property Forms : 

Appraisal forms can be divided into a few categories, but the main two are residential and commercial forms

Properties that are considered residential properties include: single-family homes, condominiums, mobile homes, and 2-4 unit properties.

There are four home appraisal types for the mortgage loan process. The four types are the full appraisal, exterior-only appraisal, the rental analysis, and the broker price opinion

Form 1004 – Single-Family Residential Inspection

The 1004 appraisal form is the go-to form for residential appraisers, especially for single-family properties. This form is utilized for interior and exterior inspections, mostly for refinance or purchase transactions requested by lenders.

This form is suitable for appraising detached single-family homes as well as townhouses.

Form 1073 – Condominium Unit Appraisal

The 1073 form is a commonly used real estate appraisal form for residential properties, following the 1004 form.

It is used to produce an appraisal report for individual condominium units, serving conventional lending purposes. Unlike the 1004 form, which appraises single-family properties, the 1073 form is specific to condominiums.

While the form has many similar fields as the 1004 form, several are customized for condominium appraisals.

Exterior Inspection Only Forms :

When an interior inspection is necessary, the forms discussed earlier are utilized.

However, there are two forms for when only an exterior inspection of the property is performed, referred to as an “Exterior Only” appraisal.

These forms are still considered appraisal forms for conventional loans on residential properties.

Form 2055 – Exterior Inspection of Single-Family Homes

The 2055 form is a specialized form for exterior-only inspections of single-family homes. It is used only upon request from the client.

This form is commonly used when the loan-to-value ratio is low or access to the interior of the property is unavailable. It is also utilized for loan servicing purposes.

Form 1075 – Exterior Inspection of Individual Condominiums

The 1075 appraisal form is similar to the 1073 form for individual condominium units but is specifically for exterior-only inspections like 2055 above.

This form has many of the same fields as the 1073 form but omits those related to interior characteristics.

Interior or Exterior Inspection Forms : 

Confusion may arise with the following two forms as they can be used for either an interior or exterior inspection. They are typically used when a full inspection of the property is necessary.

1004C – Manufactured Home

Like the 1004 and 1073 forms, the 1004C is also for residential properties but of a different sort. The 1004C form is for manufactured homes.

Many of the fields are similar to the single-family and condo forms, but many are specific to manufactured homes.

1025 – 2-4 Units

The 1025 form is a little different than the previous ones, but I included it in the residential forms section because it is used for what is still considered a residential property.

That is a 2-4 unit property.

This form is a little different; it is laid out with additional sections specific to 2-4 unit properties.

These sections include rental comparable before the sales comparable and value indicators below the sales comparable.

This is an appraisal form used for investment properties.

Other Forms :

The major appraisal forms are summed up above, but there are some additional forms that serve other purposes.

These forms can be ordered as a supplement to the major report or as a standalone report.

1004D – Appraisal Update or Completion Report

The 1004D is utilized when a client wants the appraiser to either a) verify that the value has not changed since the effective date of the prior appraisal or b) go back and reinspect the property to verify that something has been repaired or replaced.

1007 – Single-Family Rent Schedule

The 1007 form is used as a supplement to the 1004/2055 forms talked about above.

This form is used to provide rental comparables and estimate the rental income for the subject property. This is typically used for investment properties.

216 – Operating Income Statement

The 216 form is usually ordered in conjunction with the 1007 form. It is used to determine the operating income of the subject property. It takes the market rent less operating expenses to determine the operating income.