On a URAR form, if an appraiser makes a $5,000 upward adjustment to a comparable sale for a missing garage, where should this adjustment be reflected?
Correct Answer
C) In both the 'Garage/Carport' line and the 'Net Adjustment' total
Why this is correct: On the URAR, each specific adjustment (like for a garage) must be entered on its designated line. All line adjustments automatically flow into and affect the Net Adjustment total, ensuring transparency. Why the other choices are wrong: The 'Sales or Financing Concessions' section is for financing terms, not physical feature adjustments. Entering it only on the 'Garage/Carport' line would miss updating the Net Adjustment total. Comments alone do not fulfill the form's requirement for quantified adjustments in the grid. Exam tip: Every grid adjustment must appear in its specific line and roll up into the Net Adjustment.
Why This Is the Correct Answer
Option B is correct because USPAP and URAR form requirements mandate that all adjustments must be recorded in both locations for complete documentation. The specific line item (Garage/Carport) shows the individual adjustment reasoning and amount, while the Net Adjustment total provides the cumulative effect of all adjustments made to that comparable sale. This dual recording ensures transparency, allows for proper review by underwriters and other parties, and demonstrates the appraiser's systematic approach to the sales comparison analysis. Failing to include the adjustment in either location would result in an incomplete or inaccurate appraisal report.
Why the Other Options Are Wrong
Double Entry Rule
Remember 'LINE + NET = COMPLETE SET' - every adjustment must appear in both the specific LINE item AND the NET adjustment total to create a COMPLETE SET of documentation.
How to use: When you see any adjustment question on the exam, immediately think 'LINE + NET' and look for the answer choice that includes both the specific line item and the net adjustment total.
Exam Tip
On exam day, any time you see a question about recording adjustments on the URAR, eliminate answer choices that only mention one location - proper adjustment recording always requires both the line item and net total.
Common Mistakes to Avoid
- -Recording adjustment in line item but forgetting to include in net total
- -Putting physical feature adjustments in the financing concessions section
- -Relying solely on comments section without quantifying adjustments in proper fields
Concept Deep Dive
Analysis
The URAR (Uniform Residential Appraisal Report) form requires a systematic approach to recording adjustments that ensures transparency and accountability in the appraisal process. When making adjustments to comparable sales, appraisers must document each adjustment in two places: the specific line item that corresponds to the feature being adjusted, and the net adjustment total that summarizes all adjustments made to that comparable. This dual recording system allows reviewers to trace each adjustment and understand how the appraiser arrived at the adjusted sale price. The net adjustment total serves as a critical indicator of how similar or dissimilar the comparable is to the subject property, with larger net adjustments suggesting less reliable comparables.
Background Knowledge
The URAR form is the industry standard for residential appraisal reporting, requiring specific documentation protocols for all adjustments made in the sales comparison approach. Understanding the form's structure and requirements is essential for proper appraisal practice and compliance with USPAP standards.
Real-World Application
In practice, loan underwriters and review appraisers specifically check that line item adjustments match the net adjustment totals, and discrepancies can result in report rejection or requests for revision, potentially delaying loan closings.
More Sales Comparison Questions
An appraiser is analyzing three comparable sales with the following data: Sale 1: $350,000 with +$10,000 adjustments; Sale 2: $340,000 with -$5,000 adjustments; Sale 3: $360,000 with -$15,000 adjustments. What are the adjusted sale prices?
A lender orders an appraisal for a $300,000 residential loan. After receiving the appraisal, the loan officer contacts the appraiser requesting that certain language be changed to better support the loan approval. This scenario represents a violation of:
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