The mortgage loan appraisal is generally placed on the URAR (Uniform Residential Appraisal Report) form for single family detached and attached residences. Condominiums and Multi-Family properties generally utilize a different but also abbreviated form. These reports are considered to be "Summery" reports and are limited in scope. The reports, for the most part, take a check list approach to conveying information to the reader or user and offer very little narrative. There is very little emphasis on; condition, decor, cosmetics, esthetics, and special features. The report focuses on several recent, historical or past transactions and does not take into consideration current competing properties or pending sales.
Such brevity may be considered to be adequate when one is asked to determine the reasonableness of a purchase price. In such cases, the property was exposed to the market for a reasonable period of time, may have been initially priced by one or several realtors that are active in the market, and the offer was made after a buyer considered many alternatives. This type of an appraisal is also generally all that may be needed for the elimination of PMI (Private Mortgage Insurance) as the risk is minimized with a 20% equity requirement.
An appraisal of such limited scope is not considered to be appropriate for relocations, listing a home, equity divisions for estates or divorces, or for foreclosures due to the higher probability of variance. While the appraisal requires less work and is prepared at a lower cost, the potential of an inaccurate valuation is greater and the potential costs to the parties involved greatly exceed that of having a more detailed appropriate valuation service.
The trends in the mortgage loan appraisal industry has been towards even less detail, no property inspection, reliance upon questionable data sources, forms that lack adjustments, and computerized underwriting and appraisal review. The low and in some cases, declining fees are having the adverse affect of producing appraisers that are receiving little hands on training and apprenticeship. As a result, many reports are of little value and are fueling a self destructive cycle of this portion of the appraisal industry.
Key Benefits
 | Low Initial Cost |
| Quick Turnaround Time |
| Suitable Documentation where Concerns are Low |
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