Are there different types of appraisals?
Yes, there are several types. The most common being Conventional, FHA, VA, REO (Repossession), ERC (Relocation), Commercial, Farm & Land, Refinance, Full Narrative, Complete Appraisal of any type, and a Summary Report which is the most common appraisal done for home purchase. This type of appraisal is also called by several other names. Lenders call it a URAR (Uniform Residential Appraisal Report), Full URAR, Summary or a 1004 which is the number of the form. With the exception of a Full Narrative appraisal, this type of appraisal gives a lender the most information about your home. This form uses 3 different ways to determine the value of your house. (1) The Cost Approach: How much would it cost to replace the house?, (2) The Income Approach: How much would the house be worth as a rental property? and the most often used approach which is (3) The Sales Comparable Approach. In the Sales Comparable Approach the appraiser researches all sales in your area and finds at least 3 sales in wh
