Property ValuationIntermediateArizona Exam

In Arizona, the purpose of the URAR (Uniform Residential Appraisal Report) is to:

AProvide the county assessor with a standardized valuation format for determining assessed value, which is used to calculate Arizona real property taxes annually
BProvide a standardized format for reporting residential appraisals for secondary mortgage market transactionsCorrect
CEstablish market value for HOA fee assessments, which Arizona law requires to be based on independent appraisals completed every three years
DDocument the physical condition of improvements for the benefit of the homeowner's property and casualty insurer in connection with a new or renewing policy

Why Provide a standardized format for reporting residential appraisals for secondary mortgage market transactions Is Correct

Answer B: Provide a standardized format for reporting residential appraisals for secondary mortgage market transactions

The URAR (Fannie Mae Form 1004) is the standard residential appraisal report form required for conventional mortgage loans sold to Fannie Mae or Freddie Mac, ensuring consistent data collection and reporting.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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