Appraisal Institute to Release AI ReportsT Residential Summary Appraisal Report Form

Following the release of the revised Fannie Mae 1004 form, the Appraisal Institute is preparing to introduce AI ReportsT Residential Summary Appraisal Report form. Intended to fill a need beyond mortgage lending clients, AI ReportsT Residential Summary Appraisal Report form is designed for use in a wide variety of appraisal assignments, including insurance purposes, probate, litigation, and valuation for estate and financial planning.

The AI ReportsT Residential Summary Report form will be turned over to all major appraisal software companies to be scheduled for programming and is projected to be made available concurrent to the fall 2005 implementation date of the revised 1004 form.

"When Fannie Mae released the draft versions of their proposed 1004 forms, it was immediately apparent that non-lending uses could no longer be accommodated within that format" explains Leland Trice, SRA, chair of the AI ReportsT project team. "We felt the Appraisal Institute was well-suited to produce new residential appraisal report formats to fill this void."

The project team began working on AI ReportsT Residential Summary Appraisal Report in late 2004. Composed of Appraisal Institute members holding the SRA designation, as well as associate members, the project team was charged with developing an appraisal report form that would be consumer-centric, appraiser-friendly and USPAP compliant. After an exposure draft of the proposed form was sent to the Appraisal Institute's full membership in June, the project team was able to analyze feedback and incorporate changes in the form where appropriate.

Features of the AI ReportsT Residential Summary Appraisal Report form include:

• Letter-size format - professional vs. legal look
• Focus on additional data fields relevant to the assignment
• Additional comparative data regarding neighborhood and improvements
• Single page sales comparison analysis, cost analysis and income analysis
• Refined limiting conditions
• Clear identification of the appraisal company in addition to specific appraiser(s)
• E-mail and Web addresses of the appraiser and the appraisal company

"Appraisers and their clients will equally benefit from the AI ReportsT Residential Summary Appraisal Report," Trice comments. "The client will receive a report that is appropriate for the intended use and clearly defines the scope of work. And similarly, the appraiser is not forced to use a report that is not ideally suited for an assignment."

For more information, contact Ed Duszak at aireports@appraisalinstitute.org.

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