When you buy, sell, or finance a property, it’s important to know how much it’s worth. One of the ways to determine a property’s value is through an appraisal. An appraisal is when an expert (called an appraiser) inspects a property and fills out a report to show how much it is worth.
Appraisers use special forms to write their reports, and the type of form depends on the kind of property being appraised.
The 1004 form is used when appraising single-family homes. A single-family home is a house meant for one family to live in. This form is used most often for residential properties.
The appraiser uses the 1004 form to gather information about the house and the neighborhood. Here’s what the appraiser looks at:
- The condition of the property: Is the house in good shape? Does it need any repairs or updates?
- The size of the house: How big is the house? How many rooms and bathrooms does it have?
- Nearby homes (comps): The appraiser will look at homes in the same area that have recently sold. These homes should be similar in size and condition to the one being appraised.
- Location: The neighborhood, nearby schools, and amenities (like parks or stores) can affect the value of the property.
The 1004 form helps the appraiser figure out the home’s value, so it can be used for buying, selling, or getting a loan.
2. 1073 - Condominium Appraisal Form
The 1073 form is used to appraise condominiums (or condos). Condos are different from single-family homes because they are part of a larger building or complex. People who own condos share walls, floors, and ceilings with their neighbors.
The 1073 form is used to evaluate both the individual unit and the entire building. Here’s what the appraiser will look at:
- The condition of the condo: The appraiser checks the inside of the condo, including the quality of the finishes, appliances, and if anything needs fixing.
- The building’s condition: Since the condo is part of a shared building, the appraiser will also consider how well the building and its common areas (like hallways and elevators) are maintained.
- Shared spaces: The condo owners share the responsibility for things like the lobby, hallways, and amenities (like a swimming pool or gym). The appraiser will look at how well these areas are cared for.
- Nearby condos (comps): The appraiser will also compare the condo to other similar condos that have recently sold.
The 1073 form ensures that all the unique factors of a condo are considered when determining its value.
3. 1004C - Manufactured Home Appraisal Form
The 1004C form is used to appraise manufactured homes (also called mobile homes). Manufactured homes are different from traditional homes because they are built in a factory and then moved to a location. These homes may be placed on a temporary or permanent foundation.
Here’s what the appraiser will consider when using the 1004C form:
- The size and layout: How big is the manufactured home? How many rooms does it have?
- The foundation: Is the home placed on a permanent foundation, or does it still have wheels? Homes on permanent foundations are generally worth more.
- The condition and age of the home: The appraiser checks the home’s condition and whether it needs any repairs.
- Nearby manufactured homes (comps): The appraiser will look at other manufactured homes in the area that have recently sold to determine the value.
The 1004C form is designed to handle the unique features of manufactured homes, ensuring that the appraiser evaluates it fairly.
4. 1025 - Multi-Family Appraisal Form
The 1025 form is used for multi-family properties, such as duplexes, triplexes, or fourplexes. These are properties with two or more separate living units. Sometimes, the owner may live in one unit and rent out the others, or all the units might be rented out for income.
The 1025 form is different because it looks at both the property’s physical value and its potential to make money from rent. Here’s what the appraiser will consider:
- Income potential: The appraiser checks how much money the property can make from rent. They look at the rent prices for similar properties in the area.
- The condition of each unit: The appraiser looks at each unit in the building, checking for any repairs or improvements needed.
- Nearby multi-family properties (comps): Just like with single-family homes, the appraiser will compare the property to other multi-family properties that have recently sold in the area.
- Costs of maintaining the property: The appraiser will also think about the costs to run the property, such as utilities, repairs, and management fees.
The 1025 form is important because it helps the appraiser understand both the property’s physical value and its ability to make money for the owner.
Why These Forms Matter?
Each of these appraisal forms is used for different types of properties. Using the correct form is important because it helps the appraiser consider the unique features of each property. For example, a condo is different from a single-family home, so it needs a different appraisal form. Similarly, a multi-family property is valued differently because it can make money from rent.
By using the right form, the appraiser can make sure they’re considering everything that affects the property’s value. This helps ensure that the buyer, seller, or lender gets a fair price and makes informed decisions.
Conclusion
Real estate appraisal forms are essential for determining the value of different types of properties. Whether it’s a single-family home, a condo, a manufactured home, or a multi-family property, the right form helps appraisers gather the necessary information to provide an accurate value.
Each of these forms—1004, 1073, 1004C, and 1025—is designed to evaluate a specific type of property. Understanding these forms helps buyers, sellers, and investors make better decisions when it comes to buying, selling, or financing real estate.
Knowing which form is used for which type of property can make the appraisal process clearer and help you feel more confident when going through it. Whether you’re buying your first home or investing in a rental property, understanding how these forms work will help you navigate the real estate world with ease.
