On the traditional Fannie Mae Form 1004 Uniform Residential Appraisal Report, where is a detached garage primarily reported?
Correct Answer
D) In the Improvements section under 'Garage/Carport'
The traditional 1004 Improvements section has Car Storage information for garages/carports, including attached/detached status. Relevant garage characteristics and supported contribution may also be described or analyzed elsewhere. Use the applicable report structure for the assignment; this question addresses the named legacy field.
Why This Is the Correct Answer
Option D is correct because the traditional Form 1004 Improvements section has car storage information for garages and carports, including attached or detached status. Fannie Mae guidance also states that outbuildings are described in the Improvements and Sales Comparison Approach sections, so the Improvements section is the primary place for the detached garage description.
Why the Other Options Are Wrong
Option A: In the Cost Approach section
Option A is wrong because the Cost Approach section is where the cost of improvements may be estimated, not where the garage is primarily described. The garage's description belongs in the Improvements section.
Option B: In the Site section of the form
Option B is wrong because the Site section covers the land, such as dimensions, zoning, utilities and site features. A detached garage is an improvement and is primarily reported in the Improvements section.
Option C: In the additional comments section, and nowhere else
Option C is wrong because reporting the garage in additional comments and nowhere else would omit it from the form's car storage fields. Comments can add detail, but the garage is primarily reported in the Improvements section.
Garage is an improvement
A garage is something built on the land, so it goes where things built on the land go: the Improvements section.
How to use: Use this to decide whether a feature belongs in the Site or Improvements section of the form.
Exam Tip
Land features go in the Site section; buildings and structures, including detached garages, are described in the Improvements section and compared in the sales grid.
Common Mistakes to Avoid
- -Reporting a detached garage in the Site section because it is not attached
- -Describing the garage only in comments
- -Treating the Cost Approach section as the main place to describe a garage
Concept Deep Dive
Analysis
This question tests where a detached garage is primarily reported on the traditional Form 1004. The Improvements section contains the car storage fields for garages and carports, including whether they are attached or detached, so that is the primary location.
Background Knowledge
The traditional Form 1004 organizes property information into sections such as Subject, Neighborhood, Site, Improvements, Sales Comparison, Cost and Income. Garages, carports and other outbuildings are improvements and are described in the Improvements section and analyzed in the Sales Comparison Approach. Their contribution may also be addressed in the cost approach when it is developed.
Real-World Application
An appraiser inspects a home with a two-car detached garage. The appraiser checks the garage and detached boxes in the car storage area of the Improvements section and adjusts for differences in garage type in the sales comparison grid.
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