ADU vs. Two-Family Property for Appraisers

By on November 21, 2025   /   ADUs, appraisal business, UAD 3.6   /   Leave a comment
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Newz: ADU vs. Two-Family Property,
Everyone Must Be Ready for UAD 3.6

November 21, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA: Protecting My Appraisal Report
  • How to Identify a Single-Family with ADU vs. Two-Family Property
  • $1 Million Midcentury Modern Ranch House on Lake Michigan Holds a Wild Surprise in the Basement
  • Top Appraisers Advise on How to Generate New Business
  • When One Bulb Fails… Why Everyone Must Be Ready for UAD 3.6 By Tony Pistilli
  • A Real Estate Agent’s Guide to Understanding the New UAD 3.6 Appraisal Report By Tom Horn
  • MBA: Mortgage applications decreased 5.2 percent from one week earlier

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SFR or 2 units with an ADU?

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How to Identify a Single-Family with ADU vs. Two-Family Property

Excerpts: Across the country, accessory dwelling units (ADUs) are becoming more common. Cities and counties are updating zoning laws to encourage them, whether to increase housing supply, create affordable rental options, or allow families to live closer together. Appraisers need to understand how ADUs fit into their local markets, how they’re used and perceived, and how to properly distinguish them from true two-family properties.

The presence of an additional living unit can complicate the appraisal process by making it difficult for you, the appraiser, to know how to classify the subject property. How do you know whether you’re dealing with an accessory dwelling unit (ADU) or a second unit? In this article, you’ll learn about ADU meaning and types as well as how to identify a single-family with ADU vs. two-family property.

Topics include:

  • What Is an ADU?
  • Do ADUs Add Value to a Property?
  • Types of ADUs
  • What Is a Two-Family Property?
  • Is It a Single-Family with an ADU or Two-Family Property?

To read more and watch an ADU video, Click Here

My comments: Good explanations of ADU issues. Well done short video. UAD 3.6 requires including details on ADUs.

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$1 Million Midcentury Modern Ranch House on Lake Michigan Holds a Wild Surprise in the Basement

Excerpts: 3 bedrooms, 2 baths, 2,568 sq.ft., 3.1 acre lot, built in 1959

Upon first glance, the three-bedroom home looks much like a traditional single-story bungalow, complete with a charming brick façade, covered porch, and red-framed windows.

But at the back of the Caledonia, WI, home, a very different reality presents itself: The dwelling actually dips down over the side of a hill, concealing a spacious lower level.

And what lies beneath in that basement story certainly has to be seen to be believed: an expansive private theater complete with tiered seating, professional lights, and a historical organ that takes center stage in the artistic space.

The lavish, one-of-a-kind music auditorium features chandeliers, a projection booth, and seating for 50. The furnishings were collected from nearly 50 different theaters across the country that were being demolished.

The focal point of the theater is the biggest Wurlitzer pipe organ ever built, which boasts five keyboards and four organ chambers.

The property “also sits on 3 acres with frontage along Lake Michigan,” Cape says.

To read more, Click Here

To read the listing and see an aerial view plus more photos, Click Here

My comment: Added value of a “basement” theater ???

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Top Appraisers Advise on How to Generate New Business

Excerpts: What are some ways appraisers can generate new business and new leads, outside of AMCs? How do the top appraisers market themselves? We interviewed three leaders in the appraisal profession to find out. Plus, we surveyed our larger appraisal community for additional tips and insights.

Keep reading to learn the most effective marketing strategies according to experts and seasoned appraisers, as well as techniques to get your name out there and make yourself more marketable.

Topics include:

  • Add Some Non-Lender Work into the Mix
  • Put Out a Monthly Newsletter
  • Build New Relationships
  • Leverage Online Marketing Tools
  • Diversify Your Client List

Survey results: Top three ways to generate new appraisal business,

  • Build new relationships
  • Diversify your client list
  • Leverage online marketing tools

To read more, Click Here

My comments: Many appraiser comments. Worth reading for new ideas or just to see what appraisers say. The survey results are interesting also. I have written many articles about appraiser marketing and non-lender appraisals in my monthly newsletter, starting in 1993.

I dropped all lender residential appraisals in 2005. The URAR was updated with codes in the sales comparison grid. I never updated my software so I would not be tempted to do them. I had been accepting non-lender appraisals since I started my business in 1986.

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Appraisal Today articles on UAD 3.6

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April 2025 – first article

New URAR What It Means for Appraisers

Fannie Q and As and other information available in April.

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May 2025

Review of Appraiser’s Guide to the New URAR Class

How to use Document F-1 to find what GSEs want in the PDF Report plus other introductory information and a review of the class.

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June 2025: What is new in the New URAR

Introduction to UAD 3.6 and more info on topics in May 2025 and Scenario SR 1 – Single Family, used in many demos and discussions. I go through every page of the 20 page document and include what is new with references document F-1

Additional PDFs (on Paid subscriber web page):

Sample Scenario SF1 (Single Family) PDF Report – discussed in this article

Appendix F-1 URAR Reference Guide v1.2 14 MB

Fannie Sample Scenario PDFs Combined 15MB All scenarios

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July 2025: From UAD 2.6 to UAD 3.6.

What appraisal software vendors are doing.

First article on this topic. I had live demos on Bradford, alamode, and SFREP. I asked them specific questions about fields. None of the vendors were “ready to go” on their software. 5 screen shots are included at the end of the article.

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November, 2025: UAD 3.6 Update – Software Vendors, Both Old and New and More Info

In October, none of the software vendors were ready to use software for completing appraisals. All are focusing on the Broad Production start date of January 26, 2026, but I don’t know who will complete the software by that date.

Recently appraiser Andy Arledge developed UAD 3.6 software. He

previously developed Appraiser Genie Software (Genie Cloud does adjustment support, Cost Approach and more) He now has Freedom Appraise software for UAD 3.6, similar to the other companies above.

Coming in the December Issue

UAD 3.6 Update – what software vendors are doing now. None are completely ready to go with a GSE approved report software, inspection app (critical) , AI, and “add ons” such as sketch software and other software such as DataMaster and Spark.

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November, 2025 issue emailed on

Monday, November 3 , 2025 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it. Or, call 510-865-8041

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When One Bulb Fails… Why Everyone Must Be Ready for UAD 3.6

By Tony Pistilli

Excerpts: Imagine standing before a beautifully decorated Christmas tree, ready to flip the switch. You plug in the lights and nothing happens. You check the plug, the length of the wire and each bulb, one at a time, until you find that one tiny bulb somewhere along the strand is broken or loose, and its causing the entire string of lights from working.

Similarly, in complex systems, the weakest link often determines how well the system functions or whether the system functions at all. The upcoming mandate for the Uniform Appraisal Dataset 3.6 (UAD 3.6) and the redesigned Uniform Residential Appraisal Report (URAR) is such a system. If any single stakeholder in the mortgage/valuation chain fails to support the standard, the entire “string” of appraisal-to-loan delivery can go dark.

That’s why appraisal software, appraisers, appraisal management companies, lenders and even the GSEs, must all be certified and/or ready to go for UAD 3.6 to work as intended.

The intent behind UAD 3.6 is sound. The GSEs envision a future where every appraisal report flows through a standardized data structure, allowing automated checks for completeness, consistency, and reasonableness. This improves quality control, speeds up underwriting, and reduces repurchase risk. All good things for everyone involved.

For lenders, this hopefully means fewer delays and cleaner first time submissions. For AMCs and appraisal technology providers, it promises streamlined operations and transparency. And for appraisers, it’s an opportunity to be recognized not just as form fillers or report writers but as data professionals in an evolving digital mortgage process.

But this transformation requires total synchronization. UAD 3.6 isn’t simply a new “form.” It’s like an entirely new language and every participant must speak it fluently, from the moment an appraisal order is created to the moment the report is submitted to the GSE portal.

That undeniable interdependence is precisely why partial readiness won’t work. The system only functions when every “bulb” is working in unison.

Appraisers at the Center

Every modernization effort in mortgage lending eventually comes down to people. And appraisers sit at the center of this one – again.

Even if every system upstream and downstream is certified or ready for UAD 3.6, the entire process begins with the professional boots on the ground inspecting the property and completing the report. If appraisers aren’t trained, equipped, or willing to adopt the new framework, no amount of readiness elsewhere will matter.

To read more, Click Here

My comments: Definitely worth reading. The author has over 30 years of executive-level real estate valuation and lending experience including working with national banks, mortgage companies, federal agencies, and leading appraisal management firms. He is a certified residential real estate appraiser in Texas and is an AQB Certified USPAP Instructor.

Since May 2025 I have been writing about UAD 3.6, more recently focusing on the software vendors. Only one new vendor (Aivre) plus SFREP have GSE “approved” report software (per Fannie website) Aivre still working on their mobile app, AI features, etc.

Appraisers cannot learn how to do the new UAD 3.6 reports if the software is not available.

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A Real Estate Agent’s Guide to Understanding the New UAD 3.6 Appraisal Report

By Tom Horn

Excerpts: This update doesn’t just affect appraisers. It also changes how agents, buyers, and sellers read and understand the report.

I recently spoke with an office of real estate agents discussing the new UAD 3.6 and how it affects them. I thought I would create this post to help educate other agents who are interested in learning more about this new report format.

How It Helps Agents

For agents, the biggest benefit of the UAD 3.6 appraisal report is clarity.

It’s easier to see how the appraiser arrived at the opinion of value without getting lost in technical terms.

Here’s what that means for agents:

  • Easier conversations with buyers and sellers about how value was determined.
  • Fewer misunderstandings when the appraised value is higher or lower than expected.
  • A clearer picture of how updates and repairs were considered.

4. How It Helps Agents

For agents, the biggest benefit of the UAD 3.6 appraisal report is clarity.

It’s easier to see how the appraiser arrived at the opinion of value without getting lost in technical terms.

6. Here’s what that means for agents:

  • Easier conversations with buyers and sellers about how value was determined.
  • Fewer misunderstandings when the appraised value is higher or lower than expected.
  • A clearer picture of how updates and repairs were considered.

To read more, Click Here

My comments: A local appraiser I know gave a presentation on this topic recently. He included copies of a sample report (SR1) and used Fannie slides for illustration. He compared the current form reports to the UAD 3.6 reports. They liked the new reports much better than the old forms.

You can try doing a presentation yourself to real estate agents. Most Excellent Marketing opportunity for you. This will also help you explain the new reports to real estate agents.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2025.

Mortgage applications decreased 5.2 percent from one week earlier

WASHINGTON, D.C. (November 19, 2025) — Mortgage applications decreased 5.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 14, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 5.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7 percent compared with the previous week. The Refinance Index decreased 7 percent from the previous week and was 125 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 26 percent higher than the same week one year ago.

“Mortgage rates increased for the third consecutive week, with the 30-year fixed rate inching higher to its highest level in four weeks at 6.37 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Application activity over the week was lower, with potential homebuyers moving to the sidelines again, although there was a small increase in FHA purchase applications. Refinance applications decreased as borrowers remain sensitive to even small increases in rates at this level. The overall average loan size across both purchase and refinance applications dipped to its lowest level since August of this year, driven by another drop in the ARM share.”

The refinance share of mortgage activity decreased to 55.4 percent of total applications from 55.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5 percent of total applications.

The FHA share of total applications increased to 19.9 percent from 19.4 percent the week prior. The VA share of total applications increased to 15.2 percent from 14.8 percent the week prior. The USDA share of total applications increased to 0.3 percent from 0.2 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.37 percent from 6.34 percent, with points remaining unchanged at 0.62 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.39 percent from 6.46 percent, with points increasing to 0.42 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.14 percent, with points increasing to 0.84 from 0.76 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.83 percent from 5.70 percent, with points increasing to 0.69 from 0.64 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.65 percent from 5.50 percent, with points decreasing to 0.81 from 0.85 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

Mortgage Bankers Association

1919 M Street NW

5th Floor

Washington, DC 20036

(202) 557-2700

(800) 793-622

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Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

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Fannie Mae’s Selling Guide Updates

By on November 14, 2025   /   appraisal business, bias, Fannie, UAD 3.6   /   Leave a comment
Tags: , ,

Newz: Fannie Mae’s Selling Guide Updates, Appraisers and Certainty in Mortgage Lending

November 14, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA: Conflicting Assignments and Professional Ethics
  • Beyond Terminology: What Fannie Mae’s Selling Guide Updates Mean for Appraisers
  • Genius’ Midcentury Modern Home Designed by Jimi Hendrix’s Studio Architect Lists in Woodstock for $3.5 Million
  • App-solutely Clueless: When Sales Tries to School Appraisers
  • Trump Defends 50-Year Mortgage Plan as ‘Not a Big Deal’ After Furious Backlash
  • The Strategic Advantage of Certainty in Mortgage Lending What it means for appraisals
  • MBA: Mortgage applications increased 0.6 percent from one week earlier

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Changes to Fannie Selling Guide dated April 15, 2014

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Beyond Terminology: What Fannie Mae’s Selling Guide Updates Mean for Appraisers

by Scott DiBiasio, Director of Government Affairs, Appraisal Institute

Excerpts: Fannie Mae recently issued important updates to its Selling Guide that may look like technical revisions but have significant implications for appraisers, consumers, and the valuation profession. The most visible changes involve the retirement of the term “appraisal waiver” in favor of “value acceptance” and adjustments to the Reconsideration of Value (ROV) process. Together, these changes reflect the GSEs’ modernization priorities—but also highlight the ongoing tension between efficiency and transparency.

From “Appraisal Waiver” to “Value Acceptance”

Fannie Mae has decided to eliminate the term “appraisal waiver” from the Selling Guide, replacing it entirely with “value acceptance.” Even the parenthetical “(appraisal waiver)” has been removed. The stated goal is to unify industry language and create consistency across the valuation spectrum.

That may sound harmless, but let’s be clear: the average consumer is not going to recognize that “value acceptance” means their lender has waived an appraisal altogether. That lack of clarity undermines transparency at a critical stage of the lending process.

The Appraisal Institute (AI) will absolutely continue to call these products what they are: appraisal waivers. Language matters. Consumers and appraisers alike deserve accuracy, not euphemisms, when it comes to understanding whether an independent appraisal has been performed.

Why This Matters for Appraisers

Taken together, the Selling Guide updates and the expansion of waiver-based models point to several key takeaways:

1. Language shapes perception. If consumers don’t recognize that value acceptance is an appraisal waiver, transparency suffers. That’s why AI will continue to call these products by their true name.

2. Efficiency is not clarity. Simplifying disclosures may ease compliance for lenders, but it risks reducing borrower awareness of their rights.

3. Modernization is accelerating. With waivers, UPDs, and hybrid appraisals expanding, appraisers must adapt their skills to remain at the center of the valuation process.

4. Incursion is real. Regulators, property data collectors, and third-party vendors are positioning themselves between appraisers and their clients. The profession cannot afford to cede ground.

To read more, Click Here

My comments: I had never read about what is discussed in this article. I don’t always read the Fannie Selling Guide Updates. Now I know why it is important.

When I wrote my article on Appraisal Regulatory Chaos in the monthly Appraisal Today newsletter, Scott let me include excerpts from what he has written about it plus sent me new information. This article has a few “promotional” comments about AI and classes, but well worth reading.

Read more!! →

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Bias in Appraisals. What Does It Mean?

By on October 17, 2025   /   appraisal, appraisal business, real estate market   /   Leave a comment
Tags: , ,

Newz: Tariffs Effects on Home Building,
The Cupola and Its Cooling Comeback

October 17, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Unreasonable Subpoena Request
  • California home built around giant boulder lists for $2 million
  • What’s That Box on the Roof? The Cupola and Its Cooling Comeback
  • Trump’s Tariffs on Lumber and Cabinetry Kick In, Hitting Homebuilding and Renovation
  • The Appraiser’s Guide to Evaluating Home Value Before You Buy
  • Mortgage applications decreased 1.8 percent from one week earlier

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What does “bias” in appraisal really mean?

Hal Humphreys

and Peter Christensen Video

Excerpts: What constitutes “bias” in appraisal isn’t always what you expect, according to an attorney who handles cases involving appraisers.

Now let’s zoom in on bias. This topic does NOT inspire feelings of neutrality in the appraisal community. That non-neutrality comes out (a bit explosively) in comments threads and appraiser forums, and sometimes even in the classroom. I’ve sat in on several of Peter Christensen’s in-person classes on bias and fair housing law, and invariably somebody in class pushes back. Sometimes the air gets pretty hot and hostile. But Peter always handles the pushback with calm and aplomb. He hears folks out, responds respectfully, and steers the conversation back to his thesis — that bias exists, and it can take forms that we don’t necessarily expect.

In a brief interview I did with him (see the video below), he tells a story about a case he handled, in which an appraiser’s report was found to exhibit bias to a homeowner whose political views he loathed. Peter tells this story in his class, and it always surprises people, because they’ve seen this divide in their own lives and can imagine something like this actually happening.

I thought I knew what bias looked like, but I’ve begun to realize that it can creep in when we’re least expecting it. —Hal Humphreys

To read more and watch the video, Click Here

My comment: Interesting analysis. Very good video. Worth watching the video and reading the text.

Read more!! →

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Why AI Can’t Replace Appraisers

By on October 3, 2025   /   AI, appraisal business, UAD 3.6   /   Leave a comment
Tags: , ,

Newz: Why AI Can’t Replace Appraisers,
Value: Absolute or Relative?

October 3, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Weather Impact
  • Five Reasons AI Cannot Replace Real Estate Appraisers, By Timothy Andersen
  • Malibu (CA) Waterfront Home for $110,000,000
  • How Bureaucratic Overreach Turned Real Estate Appraisers into Scapegoats
  • September 2025 Housing Market Updates for Appraisers
  • Value: Relatively Absolute or Absolutely Relative?, By Brent Bowen
  • Mortgage applications decreased 12.7 percent from one week earlier

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Five Reasons AI Cannot Replace Real Estate Appraisers

by Timothy Andersen

Excerpts:

QUESTION: When I got involved in real estate appraisal, nobody ever told me about AI, UAD 3.6, AVMs, and all the changes that would take place. I can’t keep up with these changes and the changes I will have to make to the way I appraise and report those appraisals. Please tell me there is some good news out there about the way I have chosen to make a living! Is there any such news?

RESPONSE: Traditionally, when there were questions of real property value, the party with the questions called a real property appraiser to answer them. Real estate appraisers are professionals who estimate the value of properties like homes or land. They are trained, licensed experts who visit properties, study local markets, and follow ethical rules to make fair valuations. Lately, artificial intelligence (AI) and computer models called Automated Valuation Models (AVMs) are helping estimate property values, thus possibly decreasing the demand for real estate appraisers.

From your question, you are asking if these innovations in AI are going to take your job. In all candor, AI is going to take some appraisal jobs. But the good news is that, with some upgrading on your part, that should not be a worry.

Reason 1

One reason you’ll get all the credit (or blame) is that humans exercise judgment, follow ethics, and accept responsibility. Algorithms cannot execute these since, to some extent, judgment, responsibility, etc. have an emotional component to them, rather than purely logic or reason. Remember, AI is a tool to help you. In so many ways it cannot replace you (nor was that its design).

Reason 2

One reason you’ll get all the credit (or blame) is that humans exercise judgment, follow ethics, and accept responsibility. Algorithms cannot execute these…

Reason 3

One reason it cannot replace you is simply because AI (i.e., AVMs) struggles with unique or complex houses, especially if those are rural properties…

Conclusion

At this point in the response, you rightly ask, “What does any of this have to do with me!?” That answer is essentially up to you….

To read more, Click Here

My comments: What AI means for your appraisals (and many jobs) can be scary. This article is understandable and comprehensive. Worth reading the details.

Read more!! →

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Q3 2025 Fannie Mae Appraiser Update

By on September 26, 2025   /   appraisal business, Fannie, UAD 3.6   /   Leave a comment
Tags: , ,

Q3 2025 Fannie Mae Appraiser Update, When Sales are not Comps

September 26, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: When a Property Owner Wants to Do the Appraiser’s Job
  • Q3 2025 Fannie Mae Appraiser Update
  • 14 Mile Island House: $10.8 Million Historical Estate on a Private Island in New York Is Listed for Sale for the First Time in 60 Years
  • It’s the Right Time By Jeff Bradford, Founder and CEO of Bradford Technologies
  • Sales Don’t Always Become Comps By Ryan Lundquist
  • Is Commercial Property Appraisal Right for You?
  • Mortgage applications increased 0.6 percent from one week earlier
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  • Humor for Appraisers

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Q3 2025 Fannie Mae Appraiser Update

Excerpts: In this edition, we share information and resources to help you navigate recently announced changes.

Perhaps the most significant appraisal policy change in recent memory is the launch of the new Uniform Appraisal Dataset (UAD) 3.6. In this edition we continue to unpack UAD 3.6 changes with the Update Report and the Completion Report.

To help with UAD 3.6 implementation, we have created a tool for appraisers to check their reports for UAD 3.6 compliance.

We also review recent Selling Guide changes related to reconsideration of value (ROV). Speaking of the Selling Guide, we provide some tips on how to make the most of this important resource for appraisers and we highlight changes to our ANSI fact sheet.

Topic LIst

  • Restricted Appraisal Update and Completion Reports
  • Comp driveby not required for UAD 3.6
  • UAD 3.6 compliance checker
  • Reconsideration of Value update
  • Stay up to date on Selling Guide changes

My comments: No more driving comps is a big change and is somewhat controversial for appraisers. Will lenders who don’t require UAD 3.6 drop the comp inspection requirement?

To read more, Click Here

Read more!! →

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Appraisal Clipboards and UAD 3.6

By on September 19, 2025   /   adjustments, appraisal business, appraisal how to, New URAR, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: Concessions, Clipboards in Appraisals?

September 19, 2025

What’s in This Newsletter (In Order, Scroll Down

    • LIA AD: Protecting My Appraisal Report
    • Robots in Surgery, Clipboards in Appraisals: A Tale of Two Professions
    • Custom Barndominium ‘Like No Other’ With Hobby Farm and Room for Helipad Hits the Market for $12.5 Million
    • Concessions: Sellers are struggling to listen to the market by Ryan Lundquist
    • Do Nearby Home Sales Affect My Home’s Value? By Tom Horn
    • The Short-Term Rental Dilemma by JoAnn Apostol

    • Mortgage applications increased 29.7 percent from  one week earlier

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Dear Clipboard and Measuring Wheel – A Walk Down Memory Lane

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Robots in Surgery, Clipboards in Appraisals:
A Tale of Two Professions

By Tony Pistilli

September 15, 2025

Excerpts: In the distant past, a doctor could build a career practicing medicine in much the same way for decades. But today, with the rapid pace of medical advancement, it means doctors who refuse to adopt new technologies either retire early, find their practices so limited that they cannot effectively compete or fade away into irrelevance.

The technological toolbox available to doctors today is full and growing. Consider just a few of these examples.

Robots allow doctors to perform minimally invasive procedures with greater precision, fewer complications, and faster recovery times. Surgeons control the robot’s every movement, combining human judgment with precision accuracy.

Doctors vs. Real Estate Appraisers

Of course there had to be a correlation to appraisers!  In summary, doctors have largely embraced technology, reshaping their profession and improving outcomes for millions of people around the world.

Contrast that with real estate appraisers.

While doctors are saving lives with robotic tools, appraisers are often still clinging to their clipboards, tape measures and manual data entry. While physicians have adopted telemedicine to expand their reach, many appraisers have resisted bifurcation that could streamline valuation processes and bring more work and ultimately more revenue.

To read more, Click Here

My comments: Interesting analysis. A few years ago, I had major surgery where robotics were used. I was worried, but when I research robotics I found out that they can work very well. And that the robots were not doing the surgery! My surgeon determined what the robots did by the surgeon manipulating the surgical instruments in an external device to do the surgery.

UAD 3.6 is coming. Using a tablet app in the field to collect data can really help. What if you don’t want to use an app and want to use a clipboard? I spoke with a software vendor recently who will have paper check lists of what data and photos are needed when using a clipboard.

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Paired Sales Analysis

By on September 12, 2025   /   adjustments, appraisal, appraisal business, appraisal forms, appraisal how to, UAD 3.6   /   Leave a comment
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Newz: Paired Sales Analysis, The Last Appraiser,
24 Hour Turn Times?

September 12, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Why do Claims get Settled?
  • Paired Sales Analysis: Tips and Tools for Appraisers
  • Home on rare stretch of California’s Lost Coast hits market for $11M in Ferndale, CA Some Assembly Required
  • Combining Tools for Appraisals By Brent Bowen
  • The 24-Hour Appraisal Diet: Slim on Time, Light on Credibility
  • A Review of MEIN COMP: The Last Appraiser by Desiree Mehbod
  • Mortgage applications decreased 1.2 percent from one week earlier

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Tools To Support Appraisal Adjustments

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Paired Sales Analysis: Tips and Tools for Appraisers

By Kevin Hecht

Excerpts: As a professional real estate appraiser, you know that paired sales analysis is a reliable and popular method for determining the value of specific property features and providing market-based evidence to support appraisal adjustments.

Though not without challenges, paired sales analysis is a valuable technique to have in your appraisal toolkit. Mastering this method will help you develop more accurate, credible, and defensible appraisals.

Uses

Primarily used in the sales comparison approach, paired sales analysis is particularly useful for estimating the value of unique property attributes such as:

  • Location advantages (corner lots, cul-de-sac positions, or waterfront access)
  • Scenic views or privacy features
  • Property upgrades (pools, finished basements, luxury kitchens)

Importance

For property appraisers, paired sales analysis is an essential tool because it helps ensure that appraisal adjustments are supported by quantitative data. Rather than relying on cost estimates or subjective opinions, you can use actual sales data to support your value conclusions. This evidence strengthens your appraisal’s defensibility and helps you comply with USPAP.

Additional Topics

  • Step-by-Step Methodology of a Paired Sales Analysis
  • Paired Sales Analysis Tips and Best Practices

My comments: Paired sales has been used for decades by appraisers. Now, statistical analysis including graphs is available plus software that can determine adjustments. In the 8/25 issue of this newsletter, an appraiser survey of appraisal adjustments said that paired sales was the number one adjustment method used by appraisers.

I use paired sales for unusual adjustments, such as discussed above. For example, for many years I lived in waterfront homes, which is not unusual in my city. One of my homes was in a small development of similar homes built in the 1940s. Matched paired sales was very easy. Another non tract home built in the 1940s did not have similar homes nearby and paired sales did not work very well there.

To read more, Click Here

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Exposure Time vs. Marketing Time for Appraisals

By on July 18, 2025   /   appraisal business, appraisal how to, bad appraisers, bias   /   Leave a comment
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Newz: HUD and OMB PAVE Rollback, Appraiser Appraisal Capacity, Fraud Alert

July 18, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Can’t Certify the Work
  • Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals By Jamie Owen
  • Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million
  • Freddie Mac. Appraiser Capacity
  • HUD and OMB Begin Rollback of PAVE Task Force
  • Fraud Alert: Some Non-QM Lenders Excluding Loans Involving Certain Appraisers, Borrowers
  • Mortgage applications decreased 10.0 percent from one week earlier

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Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals

By Jamie Owen

Excerpts: Exposure Time: The Clock That Ticks Backward

Imagine standing in the kitchen of a colonial in Gordon Square that just sold last week. The buyers are thrilled, the sellers are relieved, and the agent is probably already on to the following listing. But in that moment, the appraiser has to ask: how long would this house have needed to be on the market to attract a willing buyer and sell at that exact price?

That’s exposure time—the hypothetical time the property was exposed to the open market before the sale, assuming it sold for fair market value.

Appraisers include this estimate to show that the sale wasn’t rushed, distressed, or out of step with the broader market. It’s a way of saying: “This was a typical deal in a typical market, and the sale price reflects that.”

Marketing Time: The Clock That Ticks Forward

Let’s shift the scene. You’re standing in the living room of a Cleveland Heights Tudor, preparing an appraisal for a homeowner who’s thinking about listing soon. They want to know not just what it’s worth today, but how long it might take to se

My comments: Worth reading. Excellent understandable article and graphic above. Good Case Study (A Hypothetical Example). Written for home owners, real estate agents, etc. but a good review for appraisers. This topic can be confusing for appraisers.

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Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million

Excerpts: The historic Seal Beach Water Tower dates to 1892, when it was built to hold water for passing steam engines, a role that it held for nearly 100 years.

In 1985, it was converted into a 2,828-square-foot, single-family residence that quickly became one of the most talked-about dwellings in Seal Beach. The interest appears to be alive and well 40 years later, with the home quickly shooting to the top of the week’s most popular homes list.

History buffs will love the four-bedroom home’s period details, including a vintage tool display “unearthed during the 1940s tribute” and a bedroom “themed after the only known pirate to haunt these shores.”

Other eye-catching updates include a foyer water feature; an elevator and circular staircase for easy access; a compass rose design found in the hardwood floors; a third-floor modern kitchen; a model train “weaving through the rafters”; a fifth-level, open-air rotunda; and a stained-glass cupola.

To read the listing and see 74 photos, Click Here

My comments: Very interesting! Check out the photos. I love the elevator: a long way to the top…

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Appraiser-Client Relationships for Appraisers

By on June 20, 2025   /   appraisal business, bias, liability, state appraiser regulators   /   1 Comment
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Newz: WA appraisers fee hikes, AI and an appraiser defense

June 20, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA Ad: Protecting My Appraisal Report
  • How to Build Strong Appraiser-Client Relationships
  • Cardiologist Lists Glass Mansion in Jackson Hole for $60 Million
  • WA Appraisers Stung by Fee Hikes and Veto
  • FOIA, AI, & the Appraiser’s Defense: A Blueprint for Fighting Back
  • MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey

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Real Estate Agents and Comparable Sales – Tips for Appraisers

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How to Build Strong Appraiser-Client Relationships

Excerpts: The most successful appraisers are those who consistently bring in new clients. Are you looking to earn more referrals and repeat business? Start by fostering good relationships with your appraisal customers. Taking the time and effort to build strong appraiser-client relationships is a great way to establish a good reputation and distinguish yourself from the competition so that you can easily generate new business through client referrals and word-of-mouth.

Not sure where to begin? To help you out, we asked our community of real estate appraisers, “Which is MOST important for building strong appraiser-client relationships?” Read their responses below for insights into several effective strategies you can use to keep your customers happy and keep business flowing.

Produce credible, high-quality work (47%)

Have clear communication (20%)

Be courteous and professional (11%)

Deliver reports on time (7%)

Go above and beyond (4%)

Other (7%)

To read more, Click Here

My comments: Worth reading the appraiser comments.

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Pending Sales for Appraisers

By on May 30, 2025   /   AMCs, appraisal business, appraisal how to, Economic analysis, GSEs, PAVE   /   Leave a comment
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Newz: PAVE Problems, Outdated Mortgage Regulations

May 30, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Should I Complete this Assignment?
  • Pending Sales May Be Your Secret Weapon To Accurate Listings and Appraisals
  • $3.69 Million ‘Tron’-Inspired Mansion With ’80s Speakeasy and Ferrari-Themed Office
  • The Full Measure: May 2025 Housing Market Recap for Appraisers
  • TEAPOTS Exposed: The PAVE Initiative’s Illusion of Justice
  • Outdated Mortgage Regulations
  • Mortgage applications decreased 1.2 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Pending Sales May Be Your Secret Weapon To Accurate Listings and Appraisals

Excerpts: Bottom line: Pending sales show you what’s happening now and where prices are headed. Skip them, and you’re stuck looking at yesterday instead of today.

Closed Sales Lag—Pendings Lead

The Built‑In Delay

  • A March 1 contract might not close until late April. By then:
  • Rates could move 50–75 basis points.
  • A new round of housing inventory could hit the market.
  • Economic news—jobs reports and inflation scares can spook buyers.

Appraiser’s View: How We Use Pending Sales (Even When We’re Handcuffed to Closings)

Time adjustments

Compare contract prices to 30‑60‑day‑old closings to justify ± market‑trend tweaks. If pendings are 3 % higher, you can show upward pressure — great ammo for your list price.

Feature bracketing

No pool comps closed? A pool home pending $25 k higher becomes my clue. Helps you price premium features correctly.

To read more, Click Here

My comments: Good discussion of many aspects of using pendings. Written for real estate agents, but many good tips for appraisers. I always look at pendings, including the ratio of pendings to listings. I got some good ideas from this blog post.  I have been appraising for 50 years. I like learning something new!

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$3.69 Million ‘Tron’-Inspired Mansion With ’80s Speakeasy and Ferrari-Themed Office

Excerpts: 3 bedrooms, 3.5 baths, 4,853 sq.ft., 8,509 sq.ft. lot

Futuristic, three-bedroom mansion that was inspired by the hit 2010 sci-fi movie “Tron: Legacy” has made a high-speed return to the market in Dallas, where it is listed for $3.69 million.

The decked-out dwelling, which also boasts an auto showroom in the living room and a Ferrari-themed home office, has been driven right to the top of the week’s most popular home’s list, after pulling in a huge amount of interest from buyers thanks to its very unique aesthetic.

Opulence abounds in every room of the property, which is spread across 4,853 square feet and includes a 1980s speakeasy with “turquoise tufted walls,” as well as a dramatic two-story living room with soaring ceilings.

To see the listing with 40 photos and a virtual tour, Click Here

My comments: See the wild interior photos with Ferraris and many unusual features!

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