From Form Numbers to Data Points: How the New URAR Changes Appraisal Orders
Hey everyone, Daniel Yoder here. As a fellow residential appraiser, I’ve been closely following the chatter around the Uniform Appraisal Dataset (UAD) 3.6 and the redesigned Uniform Residential Appraisal Report (URAR). Much of the discussion focuses on how we’ll fill out the new reports, but a crucial change is happening before we even open a file: the appraisal ordering process itself. I’ve been digging into the GSEs' latest guidance, particularly the "Lender Readiness Kit," to understand what this means for us on the ground. The big question is, how will a client order a "1004" when the 1004 form number is being retired?
From Form Numbers to Defining Data
The most fundamental shift to understand is that we're moving away from a world of static, numbered forms to a dynamic, data-driven reporting system. The new URAR is a single, flexible report. Instead of a lender ordering a "1004" for a single-family home or a "1073" for a condo, they will now provide a set of key data points about the property. These data points will define the scope of the assignment and the structure of the report.
This change is the logical conclusion of the move toward a more component-based system. If you haven't already, it might be helpful to read up on the six specific data points that are replacing the old forms, as it's the foundation for this new process. You can find a good breakdown in our previous post, "The End of Form Numbers: How 6 Data Points are Redefining Appraisals."
The New Anatomy of an Appraisal Order
So, what should you expect to see in an engagement letter in this new environment? Based on the guidance the GSEs are providing to lenders, the appraisal request will be driven by property and assignment characteristics, not a form number.
Here are the core data points your clients will use to initiate an order:
Property Valuation Method: Is it a Traditional, Hybrid, Desktop, or Exterior-Only appraisal? This clarifies the scope of work from the very beginning.
Construction Method(s): This specifies if the dwelling is Site Built, Manufactured, etc., for each dwelling on the property.
Project Legal Structure: This indicates if the property is part of a Condominium, Co-op, or Condop project.
Subject Site Owned in Common: A simple "Yes" or "No" to identify properties like detached condos.
Number of Units Excluding ADUs: Specifies if it's a 1, 2, 3, or 4-unit property.
Number of ADUs: Identifies the presence and quantity of any Accessory Dwelling Units.
This is a significant improvement. It forces a higher level of detail upfront, which means less ambiguity for us. No more accepting an order for a standard single-family home only to discover later it's a complex manufactured home in a condo project, requiring a frantic call back to the client to adjust the scope and fee.
How the Order Translates to the New URAR
These new ordering parameters map directly to the "Summary" and "Property Description" sections at the very top of the redesigned URAR. This section essentially becomes the at-a-glance confirmation of the assignment scope.
When you receive the new URAR, you'll see fields like Property Valuation Method and Construction Method prominently displayed. The checkboxes for Planned Unit Development (PUD), Condominium, Cooperative, and Subject Site Owned in Common will clearly define the property's legal and physical characteristics, all driven by the initial data provided by the lender. This creates a clear, logical thread from the initial order to the final report.
What This Means for Your Workflow and Business
The immediate, practical benefit of this change is the ability to quote fees with greater confidence. With a clearer, data-driven picture of the assignment's complexity from the outset, you can price your work more accurately and avoid the time-consuming process of re-quoting.
This structured approach also lays the groundwork for more efficient technology. This move towards discrete, standardized data points is exactly what tools like Valuemate are designed for. By capturing these specific property characteristics during the initial data collection on-site, the system can help automate the population of these key report sections, ensuring consistency and saving valuable time.
Ultimately, the retirement of form numbers is more than a clerical change. It represents a shift in thinking—from a form-based mindset to a data-first methodology. It brings more precision to the front end of our workflow, which should lead to fewer revisions, clearer communication, and a more streamlined process for everyone involved.