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In 12 areas of the Uniform Residential Appraisal Report form, written commentary is required. Of these, the "Site Comments" section is perhaps one of the most underutilized. During the course of the appraisal process, an appraiser accumulates much potentially useful information. Unfortunately, little of this data is summarized in the report. Most appraisers compress their site comments into the limited space provided on the URAR form without offering any description of the site itself, depriving the end-user of relevant material. This omission also has implications for compliance with the Uniform Standards of Professional Appraisal Practice.
The text or comment portion of the "Site" section is perhaps the most underused part of the Uniform Residential Appraisal Report (URAR) form, also known as Fannie Mae 1004/Freddie Mac 70. This portion of an appraisal report can provide much descriptive and factual information, enabling report users to understand an appraiser's judgments and conclusions.
Unfortunately, it seems that many appraisers supplying commentary in this section are interested solely in responding to the suggested items enumerated on the form itself. Those items include apparent adverse easements, encroachments, special assessments, slide areas, and illegal or nonconforming zoning use. In fact, when completing this section, many appraisers simply write in a canned statement with the word "no" in front of the list of items.
This rudimentary response does provide some necessary information, but it ignores a wide range of additional facts. In the Site Comments section, the appraiser has a chance to explain data supplied elsewhere in the Site section or other report sections and provide detail not evident in the attached photographs. Appraisers should take advantage of this opportunity
In completing the URAR form, the bottom-line task is to arrive at an unbiased, accurate estimate of market value, but so much attention is paid to the final value-the "end"-that less attention is placed on the means to that end. The appraiser should approach the assignment as if he were telling a story and as with any good story, it should have an introduction, a body, and a conclusion.
Appraisers must realize that if they want readers to understand and agree with their conclusions, they must carefully lay the foundation. If available data has been properly summarized, adequate description has been conveyed,...