The redesigned URAR is the first new appraisal report most of us have had to learn since we were trainees. If you've filled in a Form 1004 a few thousand times, you know where everything is without looking: subject at the top, neighborhood box, site, improvements, the comp grid on page two, reconciliation, the cost approach tucked in at the bottom of page three. The new report doesn't keep that map. This post walks through the redesigned URAR vs. the Form 1004 section by section, so you know where your habits land and what's genuinely new.
Key takeaways
- The 1004 was a fixed form. The redesigned URAR is a dynamic report that shows only what applies to the property.
- The neighborhood box and the 1004MC addendum are replaced by a structured Market section.
- Defects, site influences, site features and component condition are now rows in tables, not sentences in an addendum.
- Area follows ANSI Z765 language: finished area above and below grade, plus nonstandard area.
- New sections cover energy and green features, disaster mitigation, analyzed-but-not-used properties and revision history.
Why the GSEs rebuilt the report
The 1004 dates back decades in its basic layout. UAD 2.6, in 2011, laid standard codes over it (C1 through C6, Q1 through Q6, view and location codes), but the form itself stayed a page-based document with a lot of free text. When an underwriter or a model wanted to know whether the roof had problems, it had to read your addendum.
The Freddie Mac UAD 3.6 FAQ and the Fannie Mae UAD page describe the goal: one report for all residential property types, built on the MISMO 3.6 standard, with consistent, structured data. That's why the redesign is more than a cosmetic refresh. The report is now the data, and the PDF is one way of looking at it.
Section by section: old form vs. new report
The redesigned URAR's sections are defined in Appendix C-1 and explained in the Appendix F-1 Reference Guide. Here's how the familiar 1004 areas map to them.
| Form 1004 area | Redesigned URAR | What's different |
|---|---|---|
| Subject (top of page 1) | Summary, Assignment Information, Subject Property | Assignment details (client, intended use, scope, inspection type) get their own section |
| Contract | Sales Contract | Concessions are structured: present or not, amount known or not |
| Neighborhood | Market | Listings, pendings, median DOM, price ranges, demand/supply, price trend with sources |
| 1004MC addendum | Market | Built into the report |
| Site | Site | Tables for site influences, site features, utilities, encumbrances, hazard zones; broadband availability |
| Improvements | Dwelling Exterior, Unit Interior, Outbuilding, Vehicle Storage, Amenities | Per-component condition and quality, structured defects, level and room detail |
| Additional Features field | Amenities and structured rows | No catch-all field |
| Comp grid | Sales Comparison Approach | Separate subsections for site, dwellings, units, vehicle storage, outbuildings; summary metrics |
| Prior sales (in grid area) | Prior Sale and Transfer History | Its own section, for subject and comps |
| Reconciliation | Reconciliation | Adds as-is condition rating when value is subject to completion or repairs |
| Cost approach | Cost Approach | Shows when in scope |
| Income approach (1025, 1007) | Rental Information, Income Approach | Rent schedule and GRM comps built in when applicable |
| Comment addenda | Section commentary fields | Commentary lives next to the data it explains |
| (none) | Highest and Best Use | Structured: legally permissible, physically possible, financially feasible |
| (none) | Energy Efficient and Green Features, Disaster Mitigation | New sections |
| (none) | Revision History | Records revisions and reconsiderations of value |
Tip: Appendix C-1 comes in two versions: with field IDs and without. The version with field IDs is the one to keep open. When an AMC reviewer quotes "field 17.006," you'll go straight to Median Days on Market.
The biggest changes, in plain terms
From fixed form to dynamic report
The 1004 had every box on every report. If the property had no pool, the pool line sat there empty. The redesigned URAR shows a section or a row only when an indicator says it applies. The spec calls these fields Conditionally Required. An ADU indicator set to yes makes the ADU's Unit Interior appear. A body of water as a site influence makes the water frontage fields appear.
For you, this means the report asks you questions instead of handing you blanks. "Are there outbuildings?" comes before "describe the outbuilding."
The neighborhood box is gone
The one-line neighborhood description and the "Present Land Use %" grid are replaced by the Market section. You define the market area boundary and your search criteria, then report active listings, pending sales and closed sales over a period you state, each with counts and price ranges. You give the median days on market, a demand/supply read, marketing time, distressed market competition and a price trend analysis with its sources.
If you've been doing a careful 1004MC, much of this is familiar. The difference is that it's now part of every report, in the same structure, instead of an addendum some reviewers skim.
Condition and quality get more granular
Your overall C and Q ratings stay. Under them, the redesigned URAR asks for condition by component: roof, exterior walls, windows, foundation and others, each with a status and comments where needed. Interior condition and quality are rated per unit. The report includes a definitions appendix for the ratings, so the reader knows what C3 means without guessing.
Defects are structured
On a 1004, a soft spot in the kitchen floor became a sentence: "Appraiser observed a soft area in kitchen floor; recommend inspection." On the redesigned URAR, defects, damages and deficiencies are reported per area (amenities, outbuildings, the dwelling), with a description, and a cost to repair where you have one. The compliance rules check for this directly. Rule UAD1046, for example, is Fatal if amenities exist and you don't indicate whether they have any defects.
Site influences and features are tables
Instead of one "adverse site conditions" checkbox and a comment, you report each influence (a busy road, a commercial neighbor, power lines, water) and each feature as a row, with its impact on value and marketability: beneficial, neutral or adverse. Adverse or beneficial impacts trigger a required description. Utilities are reported by type and ownership. Broadband availability is a yes or no.
Area speaks ANSI
The 1004's "Gross Living Area Above Grade" line becomes Finished Above Grade, and the report adds three companions: Finished Above Grade (Nonstandard), Finished Below Grade and Finished Below Grade (Nonstandard), plus unfinished above and below grade. Nonstandard area is finished space that doesn't meet ANSI ceiling heights or is reached through unfinished space. The Sketch section asks which measurement standard you used. All of this is covered in ANSI Z765 and GLA under UAD 3.6.
Analyzed but not used
AMCs have asked for a list of sales you considered and rejected for years, usually as an addendum. The redesigned URAR has a structured home for additional properties analyzed but not used, so your reasons travel with the report.
Revision history
When you revise a report, the Revision History section records the revision date, the URAR section affected, a description, and for a reconsideration of value, who requested it, its result and your commentary. Rule UAD1750 is Fatal if you don't indicate whether a reconsideration of value has been requested. The answer is often "no," but you have to say it.
What stays the same
It's worth saying what doesn't change, because the new layout can make it feel like everything did.
- The valuation method. Sales comparison, cost and income approaches work the way they always have.
- USPAP. Your obligations under USPAP don't change. Your certification and signature still carry the report.
- C and Q ratings. The scales carry over.
- Your judgment. The redesigned URAR asks for more structure, not for a different opinion. Comp selection, adjustments and reconciliation are still yours.
What it feels like to write one
Your first redesigned URAR will feel slower, mostly because of habits. You'll reach for the neighborhood box and find the Market section. You'll type a long site comment and then realize it belongs in three rows of the site influences table. You'll leave a nonstandard area blank and get a Fatal finding for it.
By the fifth report, most of that goes away. The structure starts working for you. When the report asks about the roof, you answer. When you're done answering, the report is close to done. Fewer revision requests come back asking you to "please comment on" something you already knew.
The other change you'll notice is where errors surface. On a 1004, a reviewer found your mistakes. With UAD 3.6, the 728 compliance rules find many of them first, at UCDP. Good software runs those rules while you work.
Getting comfortable before November 2
A few ways to shorten the learning curve:
- Pull up the GSE sample appraisals in Appendix D-1 and read one for your most common property type, start to finish.
- Compare it, section by section, to a 1004 you delivered recently on a similar house.
- Move your comment library. Every canned comment should be mapped to the field where it now belongs.
- Build one practice report in your new software before your first live order.
For how this one report covers condos, 2–4 units and exterior-only work that used to need separate forms, see how one dynamic URAR replaces the 1004, 1073, 1025 and 2055. For the whole picture, start with the complete UAD 3.6 guide.
Carat builds the redesigned URAR for 1–4 unit, condo and PUD properties, keyboard-first, with the sketch's GLA flowing into the report and compliance checks that link straight to the field. It's $99 a month per appraiser, unlimited reports, and you can create an account to build your first one today.
Frequently asked questions
What is the redesigned URAR?
It's the new Uniform Residential Appraisal Report under UAD 3.6. One dynamic report replaces the Form 1004 and the other GSE appraisal forms, showing only the sections that apply to the property being appraised.
Is the redesigned URAR longer than the 1004?
It depends on the property. A simple detached house may run a similar length once you count the addenda a 1004 used to need. A property with an ADU, outbuildings or many defects will be longer, because each item gets its own structured rows.
Does the redesigned URAR still use C and Q ratings?
Yes. Condition and quality ratings carry over, and the report adds a ratings definitions appendix. Condition is also reported per component, such as roof and windows, in addition to the overall rating.
Does the 1004MC still exist under UAD 3.6?
The redesigned URAR has its own Market section covering listings, pending sales, days on market, price ranges, supply and demand and a price trend analysis, so the market analysis is part of the report instead of a separate addendum.
Why did Fannie Mae and Freddie Mac redesign the URAR?
The GSEs wanted one report that works for any residential property type, built on the MISMO 3.6 data standard, so the data in every appraisal is consistent, complete and machine-readable.