Property ValuationIntermediateDelaware Exam

What is a 'Fannie Mae Form 1004' appraisal and when is it used in Delaware?

AA commercial property appraisal form for office buildings

BThe Uniform Residential Appraisal Report (URAR) — the standard appraisal form required by Fannie Mae and Freddie Mac for conventional mortgage loans on 1–4 unit residential properties in DelawareCorrect

CA single standardized form used for every Delaware residential appraisal regardless of the underlying loan type, though many experienced professionals would note some exceptions depending on the circumstances

DA Delaware state form used for property tax assessment purposes

Why The Uniform Residential Appraisal Report (URAR) — the standard appraisal form required by Fannie Mae and Freddie Mac for conventional mortgage loans on 1–4 unit residential properties in Delaware Is Correct

Answer B: The Uniform Residential Appraisal Report (URAR) — the standard appraisal form required by Fannie Mae and Freddie Mac for conventional mortgage loans on 1–4 unit residential properties in Delaware

Fannie Mae Form 1004 (the Uniform Residential Appraisal Report) is the standard appraisal form for 1–4 unit residential properties used for conventional mortgages. It includes property information, neighborhood analysis, comparable sales, adjustments, cost approach (if applicable), and the appraiser's value conclusion.

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.

Key Property Valuation Terms in This Question

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

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Key Terms to Know

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

Capitalization Rate (Cap Rate)

A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.

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