Nearly every one-unit residential loan — owner-occupied or investment — is appraised on some version of Form 1004. It is the workhorse appraisal report in US residential lending, and understanding its basic structure makes the rest of the appraisal process, including the rental-specific addenda, much easier to follow.
What the report covers
Form 1004 documents the subject property’s site, improvements, and condition; the surrounding neighborhood; and a set of comparable sales, each adjusted for differences from the subject. The appraiser reconciles the adjusted comparables into a single opinion of market value using the sales comparison approach.
One unit only
Form 1004 applies to one-unit residential properties, including a one-unit property with an accessory dwelling unit. Two-to-four unit properties use Form 1025 instead, which adds an income approach the 1004 does not include.
When a rental addendum comes with it
On its own, Form 1004 values the property; it does not develop a rent opinion. When the property is or will be a rental — the case on nearly every DSCR loan — the lender also orders Form 1007 alongside it, completed by the same appraiser at the same inspection.
As-is versus subject-to-completion
A standard 1004 values the property as it stands on the inspection date. Where planned repairs or construction are involved, the appraiser can instead value the property on a subject-to-completion basis — see our subject to completion and as-is vs. ARV appraisal pages for how that distinction works.
Challenging the value
If the reported value looks wrong — a missed comparable, a factual error in the property description — most lenders allow a reconsideration of value request. See appraisal reconsideration of value for how that process generally works.
Form 1004 (Uniform Residential Appraisal Report) FAQ
One-unit residential properties, including one-unit properties with an accessory dwelling unit. Two-to-four unit properties use Form 1025 instead.
No. Rent is developed on a separate addendum, Form 1007, which is ordered alongside the 1004 when the property is a rental.
Yes. It is the standard one-unit appraisal report for purchase, rate-and-term refinance, and cash-out refinance transactions alike.
The method of valuing a property by comparing it to recently sold, similar properties and adjusting each one for differences from the subject.
The completed report identifies each comparable and its adjustments. Ask your lender or loan officer for a copy once the appraisal is complete.