What is the intended use of the Uniform Residential Appraisal Report?

The Uniform Residential Appraisal Report (URAR) is primarily designed for evaluating the subject property in the context of a mortgage finance transaction. This standardized form is used by appraisers to provide a detailed assessment of a property’s value, which lenders rely on when making decisions regarding financing a home purchase.

Understanding the context is essential; appraisals performed using the URAR help ensure that the value assigned to a property corresponds with the loan amount sought by the borrower. This protects lenders from risk by ensuring that the financed amount does not exceed the property’s market value. The information in the URAR is also vital for meeting regulatory requirements in lending practices.

While other uses, such as determining offering or selling prices and providing due diligence for investors, are relevant, they are not the primary purpose of this report. The URAR is explicitly tailored to assess a property's value in situations directly linked to mortgage transactions, making it a crucial tool in real estate financing.