UAD 3.6 and Appraisal Workflow

By on March 13, 2026   /   AI, humor, real estate market, statistics, UAD 3.6, Uncategorized   /   Leave a comment
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Newz: Practical AI Uses for Appraisers, Appraisal Forms Humor 

March 13, 2026

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

  • LIA AD: Client Insists on Cost to Cure
  • UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow
  • Appraisal By Kevin Hetch
  • One of Palm Springs’ ‘Storied’ Rock Houses Hits the Market for $1.5 Million: ‘A Rare Treasure’
  • Getting 94 offers & a tighter housing market By Ryan Lundquist
  • MY AD: Do I really have to report that state board issue to my E&O insurance? By Peter Christsen, Esq.
  • Beyond the Hype: How I’m Using AI to Actually Save 10 Hours a Week By Dustin Harris
  • Appraisal Forms – the next Generation – Humor
  • MBA : Mortgage applications increased 3.2 percent from one week earlier

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UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow Appraisal

By Kevin Hecht

Excerpts: For many appraisers, the transition to UAD 3.6 feels different from past form updates. This is not simply a revised version of the URAR with a few new fields or definitions. It represents a structural shift in how appraisal data is organized, communicated, and delivered.

While change on this scale can feel disruptive, it also creates an opportunity to improve efficiency, modernize workflows, and position your business for the future.

This transition is not just about learning a new report format. It is about adapting to a new data-centric environment. And one of the most important places to start is with your appraisal software.

This Is a Moment of Opportunity

Transitions like this can feel uncertain, but they also offer a chance to improve how you work.

By taking time now to understand UAD 3.6, evaluate your software options, and refine your workflow, you can position your business to operate more efficiently and confidently in the new reporting environment.

The goal is not simply to adapt. It is to build a workflow that supports you well into the future.

UAD 3.6 is coming. And with the right preparation, it can be a step forward for both the profession and your practice.

Topics

  • This Is More Than a Form Update
  • Start by Looking at Your Process, Not Just Your Software
  • Not All Software Will Handle This Transition the Same Way
  • Efficiency Gains Are Possible, But They May Require Change
  • Focus on What Supports Your Business Long Term
  • The Appraiser’s Role Remains the Same
  • This Is a Moment of Opportunity

To read more, Click Here

My comments: I had never thought about the “big picture”: how the software affects your business. Worth reading.

I have been writing about the appraisal software for a year and just wrote another article on Appraisal software vendor Timelines for my April newsletter. Only 1 or 2 are ready to go. The others need more work done. Appraisers cannot learn to use the software until it is fully completed.

Why is this going so slow? The GSEs did not check with the software vendors to see how much time they needed to complete their software. The actual time needed has been longer than expected. Also, GSE requirements to make all the software the same for the reporting section had to be exactly the same for all the vendors. Also, PDF and XML reports must be correctly done. Getting this all validated by the GSEs is taking time.

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One of Palm Springs’ ‘Storied’ Rock Houses Hits the Market for $1.5 Million: ‘A Rare Treasure

Excerpts: 3 bedrooms, 4 baths, 1,600 sq.ft. 0.45 acre lot, built in 1929

Perched high above Araby Cove, 2550 South Araby Road is a rare and storied treasure and one of Palm Springs iconic Rock Houses, originally built in 1929 by R. Lee Miller.

This historic residence is a singular blend of architecture, history, and landscape, offering sweeping panoramic views across the desert floor and exceptional privacy. Access is provided via a private road with restricted entry. Designated a Class One Historic Landmark by the City of Palm Springs, the home showcases handcrafted artistry throughout.

Stone walls rise organically from the mountainside, while original details remain beautifully intact, including hand carved doors and windows, custom shelving, exposed ceiling beams, ironwork door latches, handmade fireplace tools, and two original fireplaces, one of which includes a preserved stove pipe.

Respectfully honoring the home’s architectural legacy, the current owners acquired the property in late 2024 and completed a thoughtful transformation, bringing the residence into the modern era while preserving its soul. Extensive upgrades include updated plumbing, electrical, and HVAC systems, new appliances, an EV charger, and infrastructure improvements throughout the property.

To read the listing with a virtual tour, aerial view, 3d tour and many Photos, Click Here

My comments: Very unusual home. The photos are interesting!

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Getting 94 offers and a tighter housing market

By Ryan Lundquist

Excerpts: There is a property with 94 offers in Sacramento, and that’s not a typo. Let’s talk about this situation and how many offers most homes are getting..

A property was listed at $199,000, and it attracted 94 offers per MLS data (yes, our MLS has the number of offers). The agent who listed the property has been around a long time, and she’s great. All I’m saying is this home was strategically underpriced, and buyers showed up for it.

THERE IS SOMETHING ABOUT FIXERS THOUGH

This 94-offer example is indicative of a price strategy rather than the market being so hot. Yet, there is no mistaking there is a massive appetite for low-priced fixers (the subject was a fixer). In fact, 86% of properties with ten or more offers in the region right now are priced under $500,000 (likely underpriced under $500K).

MORE COMPETITION AT LOWER PRICES

The market isn’t the same at every price range. Do you see how there are more offers at lower prices and not as many at the highest? This is a normal dynamic, but it’s fascinating to see visually. I think this underscores how freakish it is to see 20 or more offers also.

To read more, Click Here

My comments: See the graphs and stats that Ryan uses to explain what is happening. What is your market like?

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To read more about the 4 ways, plus information on why I take ads, etc.

Click here

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Do I really have to report that state board issue to my E&O insurance?

By Peter Christensen, Esq.

In The June 2024 issue of Appraisal Today

Excerpts: This question arises because of the fear that reporting the complaint will result in non-renewal or a higher premium. Regardless of those fears and regardless of whether non-renewal or a higher premium may actually result, the safest course for an appraiser is always to report the filing of a complaint to the E&O carrier promptly upon receipt of first notice of the complaint.

Appraiser fears about reporting

Whatever the reason for having E&O, when a state disciplinary matter

occurs, appraisers understandably worry about the impact that the disciplinary matter may have on their insurance. Common fears are that their insurer will not renew their policy or that the insurer will increase their premium. These fears do have a rational basis but they are sometimes excessive.

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Monday March 2, 2026 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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Beyond the Hype: How I’m Using AI to Actually Save 10 Hours a Week

By Dustin Harris

Excerpts: Let’s be honest. Most articles about Artificial Intelligence in the appraisal profession are long on dystopian warnings and short on practical advice. They talk about the “robo-appraiser” and AVMs as if they’re just around the corner, ready to take our jobs. But what if we’ve been looking at it all wrong?

For the past two years, I’ve shifted my focus from worrying about AI to leveraging it. I’ve treated it not as a replacement, but as the most capable assistant I’ve ever hired. The results have been stunning. By integrating a few smart AI tools into my workflow, I’m consistently saving over 10 hours a week. Here’s how.

First, I tackled initial data gathering. While AI can’t magically pull specific zoning data (yet), it acts as a brilliant research analyst. Instead of manually sifting through dense municipal code or county websites, I feed the text to an AI and ask it to summarize key zoning restrictions, setbacks, or use allowances. It turns a 30-minute headache into a 5-minute review.

Next came market analysis. We all know how to export MLS data into a CSV file, but the real time-sink is interpreting it. Now, I upload the CSV to an AI tool and ask it to identify trends, calculate absorption rates, and flag outliers. It drafts a solid, data-backed market conditions summary that I then refine with my local expertise. This alone saves me an hour on a complex assignment.

One of the biggest game-changers has been handling revision requests. Instead of getting defensive, I use AI to analyze the request objectively. I feed it the reviewer’s comments and my original report section, and ask it to draft a clear, concise, and non-confrontational response. It helps me address the core issue quickly and professionally.

To read more, Click Here

My comments: Definitely the most practical, and easiest applications of AI for appraisers. I play pickleball every week with a small group of older women (the youngest is 65 years old). Several of them are doing extensive genealogy research and writing articles for publication. They are using Claude extensively. I gotta get started on using Claude or at least ChatGPT!

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Appraisal Forms – the next Generation – Humor

NEW IMPROVED SPEEDY APPRAISAL FORM

Excerpt: Description of Subject Property and Neighborhood:

Subject property is located in _______________________, a popular, well-maintained area that has enjoyed dramatic appreciation over the past year.

Most buyers appeared to be unconcerned with size or overall utility of these homes, and seemed to be paying between $____________ and $____________, regardless of difference in appearance, condition, age, etc.

To read the full form, Click Here

My comment: A Blast from the Past. This seems appropriate for today’s UAD 3.6 !

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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 2026.Mortgage applications increased 3.2 percent from one week earlier

Mortgage applications increased 3.2 percent from one week earlier

WASHINGTON, D.C. (March 11, 2026) — Mortgage applications increased 3.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 6, 2026.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4.1 percent compared with the previous week. The Refinance Index 0.5 percent from the previous week and was 81 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 7.8 percent from one week earlier. The unadjusted Purchase Index increased 9.3 percent compared with the previous week and was 11 percent higher than the same week one year ago.

“Financial markets were volatile last week amid the ongoing turmoil in the Middle East. Mortgage rates increased on net over the week, while refinance volume was roughly flat. Borrowers in recent weeks were able to get 30-year conforming rates below 6 percent, but with the current volatility, longer-term rates have moved up, pushing up the 30-year fixed rate to 6.19 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Purchase activity increased last week, particularly for FHA loans, which moved up more than 11 percent. The pace of homebuying continues to track ahead of last year’s pace, with overall purchase volume up 10 percent. More inventory on the market is supporting more transactions.”

The refinance share of mortgage activity decreased to 57.8 percent of total applications from 59.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.9 percent of total applications.

The FHA share of total applications increased to 17.1 percent from 15.8 percent the week prior. The VA share of total applications decreased to 16.1 percent from 17.1 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.19 percent from 6.09 percent, with points increasing to 0.58 from 0.52 (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 $832,750) increased to 6.26 percent from 6.16 percent, with points decreasing to 0.3 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.02 percent from 5.97 percent, with points increasing to 0.70 from 0.62 (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 5.54 percent from 5.49 percent, with points increasing to 0.68 from 0.60 (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 decreased to 5.26 percent from 5.32 percent, with points increasing to 0.64 from 0.51 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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.

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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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UAD 3.6 Humor for Appraisers

By on March 6, 2026   /   real estate market, UAD 3.6, waivers   /   Leave a comment
Tags: ,

Newz: UAD 3.6 Humor, UAD 3.6 Reality. Appraisal Volume, Waivers, PDCs

March 6, 2026

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

LIA AD: Judicial Appraiser Panels: Balancing Opportunity and Liability
UAD 3.6 – She’s Gonna Blow CARTOON!
Lake Como-Inspired Hillsborough, CA Megamansion With Koi Pond and Private Spa Lists for an $88 Million
What are home prices doing? It depends. By Ryan Lundquist
MY AD: UAD 3.6: Yes, No or Maybe
What the latest war means for mortgage rates
UAD 3.6, the New URAR, and the Reality Nobody Wants to Say Out Loud
2026 Market Update: Appraisal Volume, Waivers, and PDCs
Mortgage applications increased 11.0 percent from one week earlier’
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UAD 3.6 – She’s Gonna Blow CARTOON!

Acme Appraisal Company Replies to Their First UAD 3.6 Appraisal Order

To See the Cartoon, Click Here

My comment: Very Funny ;> And Appropriate!

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Lake Como-Inspired Hillsborough, CA Megamansion With Koi Pond and Private Spa Lists for an $88 Million

Excerpts: 6 bedrooms, 7.5+ bath, 12,404 sq.ft., 12.33 acre lot, built in 2013

It was inspired by the masterful megamansions found on the shores of Italy’s Lake Como.

The sprawling property in Hillsborough, CA, is focused almost entirely around serenity and relaxation, boasting an Asian garden, koi pond, rose garden, reflection pond, and an English spiral mound.

Known as Villa de Verano, the expansive estate begins with a tree-lined driveway that leads to a grand motor court, primary residence, guest home, amphitheater, event lawn, and pool.

Over-the-top highlights found throughout the 12,404-square-foot main residence include a fitness center, home theater, game room, spa, and saltwater aquarium.

A sports pavilion boasts a two-story lounge with viewing platform that overlooks a sunken tennis court, pickleball court, volleyball court, badminton court, bocce ball court, horseshoe court, shuffleboard court, and putting green. There is also an executive length golf course found on the property.

To read the listing, Click Here

My comment: Hillsborough is a city with many expensive homes located in the San Francisco Bay Area

Read more!! →

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Crazy Appraiser Stories

By on January 2, 2026   /   appraisal, appraisal charts and graphs, humor, non lender appraisals, real estate market   /   Leave a comment
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Newz: Crazy Appraiser Stories,
How to Do Regression, Resolutions

CHANGE YOUR TEMPLATES!!

January 2, 2026

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

  • LIA AD: Borrower Wants Answers Appraiser Can’t Give
  • Off the Rails: Crazy Appraiser Stories
  • Inside Pacific Palisades’ Most Expensive Home—a $39.5 Million Hilltop Marvel
  • How to Build a Regression Model in Excel: A Guide for Real Estate Appraisers by Jim Amorin
  • Why Resolve anything? By George Dell, MAI
  • MBA, Fannie Mae see 2027 (and 2026) housing markets very differently
  • MBA STATS – None This Week

Crazy Appraiser Stories!!

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Off the Rails: Crazy Appraiser Stories

You’ve all got stories of crazy inspections: eccentric collections, mysterious apparitions, and unorthodox decor. Here are a few we found to be the most Buzzworthy.

Excerpts: Reflections

My assignment: a log home in the middle of the city. I go into the owner’s suite, and right in the middle of the room is this built-in whirlpool tub up on a pedestal with velvet steps leading up to it. The whole ceiling is just mirrors. I think, How am I going to deal with this? The owner is so proud of this custom owner’s suite they’ve built.

It isn’t something that the normal market would want, so it has a certain…market impact, let’s say. I handled it by cost to cure.

—Jared Preisler

Let That Sink In

When I was an appraiser trainee, I was tagging along with my supervisor on a packed day of about eight appointments. It was mid-January in upstate New York. Trust me when I tell you it was COLD. First appointment, 9am: we finished walking through the inside of the home and headed outside. I began walking around the back yard (tall winter boots on, of course) when I suddenly realized I was about three feet lower than I had been moments ago. I looked down to see brown, icy water pooling around my feet. I struggled to comprehend what was happening as my boots became completely submerged. Seconds later, the homeowner cracked the door open just wide enough to shout, “Watch out for the koi pond! It’s probably covered in snow!”

I spent the rest of the day wearing socks I borrowed from a homeowner and plastic bags stuffed into my boots, while a swampy smell permeated my boss’s car. Lesson learned.

—KWAppraisalGroup

To read more, Click Here

Read more!! →

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Appraising with Inventory Shortages and Surpluses

By on December 5, 2025   /   appraisal, appraisal business, appraisal charts and graphs, real estate market   /   Leave a comment
Tags: , , ,

Newz: UAD Quality Ratings,

Appraising with Inventory Shortages and Surpluses

December 5, 2025

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

  • LIA AD: When a Property Owner Wants to Do the Appraiser’s Job
  • Understanding UAD Quality Ratings (Updated for UAD 3.6 and the New URAR)
  • Gothic-Inspired ‘Fairytale Castle’ in Miami’s Exclusive Coconut Grove Michigan Hits the Market for $24 Million
  • Navigating the Challenges of Inventory Shortages and Surpluses in Real Estate: Insights from a Chief Appraiser at a National AMC By Jim Jenkins, Chief Appraiser
  • What Is a Scatter Chart Analysis in Appraisal?
  • 53% of U.S. homes lost value in the past year, the most since 2012 – Zillow
  • MBA:  Mortgage applications decreased 1.4 percent from one week earlier

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

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Understanding UAD Quality Ratings (Updated for UAD 3.6 and the New URAR)

Excerpts: Quality ratings are one of the most familiar parts of UAD, but the way appraisers report them has changed under UAD 3.6 and the new dynamic Uniform Residential Appraisal Report (URAR). While the Q1–Q6 scale remains in place, the way you apply, support, and reconcile quality is more structured and data-driven than in the legacy forms.

What “Quality” Means in UAD 3.6

In UAD 3.6, quality represents the materials, craftsmanship, and construction standards of a dwelling. The familiar Q1 through Q6 framework still applies, but the workflow is different:

Quality is no longer a single, form-level checkbox.

You now provide quality ratings in multiple places:

  • Exterior Quality Rating (Dwelling Exterior section)
  • Interior Quality Rating (Unit Interior section)
  • Kitchen and Bathroom Detail tables
  • Overall Quality (reconciled in Section 15)
  • The “overall” rating is informed by the component-level data you report in these earlier sections.

Other topics include:

  • What Does UAD Stand For?
  • What Are the Quality of Construction Ratings?
  • Breaking Down the UAD Quality Ratings (Q1–Q6)
  • How Quality Is Applied in the New URAR
  • Tips for Applying Quality Ratings Credibly

Final Thoughts

Quality ratings remain an important part of UAD, but the approach is more precise now. UAD 3.6 pushes appraisers to rely on observable details rather than broad descriptions or market norms. When you follow the definitions, support your ratings with the structured data, and reconcile logically, the quality rating becomes a clear and defensible part of your analysis.

To read more, Click Here

My comments: Comprehensive and well written. Worth reading.

Read more!! →

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Fannie: Inspection and Reporting Tips UAD 3.6

By on October 31, 2025   /   adjustments, appraisal how to, real estate market, UAD 3.6   /   Leave a comment
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Newz: Fannie: Inspection and Reporting Tips UAD 3.6, Appraising Haunted Houses

October 31, 2025

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

  • LIA AD: Legal Request for Old Appraisal
  • Inspection and Reporting Tips for Appraiser Uniform Appraisal Dataset (UAD) Specification Issued by Fannie Mae and Freddie Mac
  • Penthouse One – 3 Story in Florida listed for $47,500,000
  • “No Name” Licenses, No Accountability: From Highways to Housing
  • Appraising Haunted Houses
  • Foolish Mortals or Bargain Buyers: 1 in 2 Americans Would Buy a ‘Haunted’ House for the Right Price
  • Mortgage applications increased 7.1 percent from one week earlier

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Uniform Appraisal Dataset (UAD) Specification Issued by Fannie Mae and Freddie Mac

Document Version 1.0

October 21, 2025

Excerpts: Navigating changes to the appraisal process can be complex – make the transition to the Uniform Appraisal Dataset (UAD) 3.6 easier with the new Inspection and Reporting Tips for Appraisers guide. This resource clarifies key differences between the new Uniform Residential Appraisal Report (URAR) and legacy UAD 2.6 forms, providing the information you need when researching or physically inspecting a property.

The purpose of this document is to assist the appraiser by highlighting the notable differences between UAD 3.6 and UAD 2.6, and direct the appraiser to appropriate section(s) in the Uniform Residential Appraisal Report (URAR) Reference Guide on the Fannie Mae and Freddie Mac UAD web pages.

The document offers tips for different sections within the URAR that may be helpful to an individual who is completing various aspects of an appraisal assignment.

• Inspection Tips: When physically inspecting the property, or

• Reporting Tips: When researching and completing the URAR, including new information that may require research from a website, the homeowner, or other source.

Items to Note:

• When there are no material differences between UAD 3.6 and UAD 2.6 with respect to

information collected, those URAR sections are omitted from this document. For example, the

information collected for “Assignment Information” is not included below because it’s very similar between UAD 3.6 and UAD 2.6.

• Review the URAR Reference Guide chapters 22 through 24 to understand the dynamic nature of the grids (Sales Comparison, Rental Comparison, GRM Comparison).

To access the Inspection and Reporting Tips for Appraisers resource, Click Here.

My comments: Worth reading. The only document I have read that compares UAD 2.6 (current form reports) and UAD 3.6 in specific fields. Uses tables that make it easier to understand. Refers to F-1, the document that contains information on fields. Hopefully, when you are doing UAD 3.6 Reports, your software will pull in the relevant sections from F-1.

I have written 6 articles on UAD 3.6 in my paid monthly newsletter, including a list of what has changed on each page of the sample SFR1 (Single Family) report. The November newsletter includes an update on software vendors and where to get demos. None have completed their UAD 3.6 software, including verification by GSEs.

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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Condo Prices, up/down/?? for Appraisals

By on October 10, 2025   /   AMCs, appraisal how to, real estate market   /   Leave a comment
Tags: , ,

Newz: NAR Calls Out Unregulated Middlemen (AMCs), Modular Construction?

October 10, 2025

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

  • LIA AD: Dealing with Unhappy Buyers as an Appraiser
  • Condo prices are obviously dropping, By Ryan Lundquist
  • Foreclosure Fixer-Uppers Ready for Their Next Chapter: 5 Abandoned Homes Offering a Bargain Deal to Buyers
  • The Modular Construction Revolution That Hasn’t Happened (Yet)

By Ivan Rupnik

  • NAR Calls Out Unregulated Middlemen: A Wake-Up Call for FHFA
  • When Appraisers Rally: Korea Sends the U.S. a Wake-Up Call
  • MBA Mortgage applications decreased 4.7 percent from one week earlier,

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Condo prices are obviously dropping

By Ryan Lundquist

Excerpts: So many price graphs right now look pretty flat, but this condo scatter graph shows definitive declines, right? This is stunning to see, but it’s also not a shocker since the condo market has been hit harder over the past couple of years. Keep in mind I’m showing the entire county, and not every single subdivision will have the exact trend.

WHAT’S HAPPENING WITH CONDOS?

Buyers have been turned off lately with condos, and so much of it has to do with HOA fees rising and affecting purchasing power (see paragraph below). There can also be issues with obtaining financing. Moreover, SB326 is a new balcony law in California in 2025, and that’s also something we want to keep watching. Yet, the declines began before 2025, so don’t blame SB326 alone.

LOSING PURCHASING POWER IS A BIG PROBLEM – SEE GRAPHIC BELOW

Check out the huge difference in purchasing power between the following two properties. The monthly payment is the same for a $350K condo with a $600 monthly HOA fee and a $450K detached home without an HOA fee. While there is some advantage in having the HOA cover exterior maintenance or even having a gym on site, buyers are looking at the math, and the higher fee has been a roadblock for condos.

SUPPLY HAS GROWN FASTER WITH CONDOS

Condo supply has been growing at a faster pace all year than the detached market in Sacramento County. This is a good reminder that not all parts of the market are experiencing the same trend (key point). No wonder why prices have gone down at a quicker rate for condos, right?

To read more, Click Here

My comments: What’s happening in your market??

Over my 40 years appraising in my local market, condo markets are almost always different than the market for detached homes.

Many condos in my city are conversions of apartments built prior to 1970. Today, there are new condos are being built here and all over the Bay Area due to very high land prices. Across the street from my office are many 3-5 story new condos with a few attached townhomes. They are sorta boring and look the same. A marina is being converted to residential mostly. I had my business there for over 30 years and had to move as my office building was destroyed in the first year of Covid.

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Appraisal Regulator Chaos

By on September 5, 2025   /   appraisal, Appraisal Foundation, appraisal how to, appraisal regulations, Appraisal Subcomitee, climate risk, Economic analysis, HOME INSURANCE, liability, real estate market, state appraiser regulators   /   Leave a comment
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Newz: Appraisal Regulator Chaos , Cat and Raccoon Damages, Wildfire Risks

September 5, 2025

What’s in This Newsletter (In Order, Scroll Down)
NOTE: Scroll down to see Appraisal Regulator Chaos

  • LIA AD: Legal Request for Old Appraisal
  • The Kitty Litter Duplex: An Appraisal I Wish to Not Remember
  • $300K Maryland Home Is Overrun by Feral Cats and Raccoons
  • The Full Measure August 2025: Navigating Rates, Inventory, and Affordability
  • Appraisal Regulatory Chaos
  • The Town With No Bank: How Rural America Lost Its Mortgage Lifeline By Dallas T. Kiedrowski, MNAA
  • New Cotality Wildfire Risk Report finds more than 2.6 million homes are exposed to moderate or greater wildfire risk
  • Mortgage applications decreased 1.2 percent from one week earlier
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The Kitty Litter Duplex: An Appraisal I Wish to Not Remember

Excerpts: How one property’s furballs left an unforgettable impression on an apartment and an appraiser

Introduction

In the world of real estate, surprises abound. Industry professionals, especially appraisers, all expect the unexpected, but even the most seasoned professionals can stumble across situations that test the limits of their experience, composure, and their judgement. There are stories of haunted houses, collapsing ceilings, and outlandish tenant actions and decorative choices (Live, Laugh, Love), but the tale of the cat-soiled duplex stands out for its sheer yuck-factor. This is the story of what should be a routine property appraisal, which became cemented in my experience stories, due to its unfathomability and coated in an unmistakable, noxious layer of feline mischief.

The Setting: An Unimposing Duplex with a Dirty Little Secret…

The Appraisal Appointment: An Unforgettable First Impression

…I could only see the flooring in the opening and a few other spots around the living room from about a foot outside the threshold, the rest of the floor was completely caked with cat poop. The walls, ceiling, and windows were all enveloped by heavy spider webs in a variety of states, while some were fresh looking, others clearly blackened from a long life filled with dust, dirt, fur, and of course fecal matter. Also, you could see multiple patches of orange mold scattered throughout the walls and ceiling. I quickly replied I would not be going in there, because it was a danger to my health and safety, which somehow surprised her….

Financial and Health Implications: When Cleanliness Becomes a Value Killer

Hygiene, general maintenance, and property values parallel each other. This may be why we have condition codes for our appraisals. Just saying…. I made sure to thoroughly explain the situation and how the value was determined in the report. I did not want this rolling back downhill and getting me. Luckily, a very gracious Fresno Construction, was able to give me a quote very quickly, which came just over $100,000 for an estimate to redo the unit in its entirety.

Conclusion

The Kitty Litter Unit stands as a testament to both the resilience of a property and the unpredictability investors face. Especially in this case, since it was for an estate of a deceased former owner.

To read more, Click Here

My comments: I appraised a house for a relocation company – one story with 3 bedrooms. There were cats on every surface above the floor, such as dressers, – all staring at me of course. In the rear of the home was a very large cat enclosure. They were rescue cats, temporarily at the home. I did not ask the owner where the cats would go when she relocated – back to the shelter or with go with her.  I will never forget about all those cat eyes staring at me!

I had another relocation appraisal where the male cat had sprayed urine along several walls in the living room. I told the relocation company to replace the drywall.

Of course, I could fill up a book with dog stories. Such as two Dobermans that broke down the door of a trailer to get to me. I somehow made it to my car and I will never forget it. Or the small dogs who bit my ankles as I was trying to get through the front door (home was owned by an appraiser I knew). For both appraisals, I told my lender client to get another appraiser.

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AI and Appraisals – the Future

By on August 1, 2025   /   AI, appraisal how to, liability, non lender appraisals, real estate market   /   1 Comment
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Newz: Future of AI in Appraisals,
Comps in Today’s Market

August 1, 2025

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

  • LIA ad: Code violations and expertise
  • The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards By Leland Trice
  • New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million
  • The problem with comps in today’s housing market By Ryan Lundquist
  • Divorce Appraisal: A Guide for Real Estate Appraisers By Kevin Hecht
  • For sale signs multiply: Inventory hits 5-year high, price cuts surge What’s happening with markets all over the country?
  • Mortgage applications increased 0.8 percent from one week earlier

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The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards

By Leland Trice

Excerpts: The real estate valuation industry stands at a pivotal moment. After decades of relying on manual processes that are inefficient, error-prone, and costly, we’re witnessing a fundamental shift toward AI and technology enabled solutions that don’t replace human expertise but amplify them.

The future of real estate valuations will likely involve increasing integration of human expertise with artificial intelligence capabilities. This evolution isn’t about replacing professional judgment with automated systems it’s about creating hybrid approaches that leverage the strengths of both human analysis and machine processing.

Opteon’s new AI-powered quality control tool, built in collaboration with technology partner Jaro, illustrates this broader evolution across our industry.

It’s important to clarify a common misconception: AI-powered tools like Intara, don’t replace appraisers or QC functions. Instead, they enable Appraisers to focus on what they do best, expert analysis and decision-making, while automating repetitive, administrative and time-consuming tasks that add little analytical value.

The “magic” of AI is its ability to look holistically at a file. We have moved past the days of checklist data review and can now examine unstructured data and images simultaneously and in conjunction with discrete data points.

A critical factor in successful AI implementation is the flexibility to meet varying requirements. Intara demonstrates this principle by embedding lender-specific criteria into quality control processes, automatically identifying discrepancies, and ensuring consistency before reports reach final review.

To read more, Click Here

My comments: This article sometimes reads as a “marketing promotion”. But, worth reading to see how one company uses AI for appraisals and how it is used.

This article goes way beyond Chat GPT. It shows how custom AI applications can work for appraisals. The author, Leland Trice, is Managing Director at Opteon USA.

New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million

Excerpts: 4 bedrooms, 5 baths, 4,763 sq.t. Townhouse

The distinctive bubbly residence has become a somewhat divisive hot spot in its Lenox Hill neighborhood, where it was built in 1969, with architect Maurice Medcalfe transforming a traditional brownstone into the eye-popping modernist masterpiece.

Medcalfe’s unique window design was intended to be “a sculptural interpretation of the classic bay window,” according to reports.

There is plenty to play with in the four-story interior, which boasts 4,736 square feet of space and includes four bedrooms, an office, and five bathrooms that are “all in need of renovation,” according to the listing.

To read the listing with 13 photos Click Here

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What’s a comparable property for appraisals?

By on June 13, 2025   /   appraisal, bias, Fannie, liability, real estate market   /   Leave a comment
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Newz: Q2 Fannie Appraiser Update, Appraiser Wins Discrimination Lawsuit

June, 13, 2025

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

  • LIA ad: Am I Still on the ‘Do Not Use’ List?
  • What’s a comparable property? Or a “comp,” as we say more informally? By Bryan Reynolds
  • Rotterdam’s Yellow Cube Homes
  • Q2 2025 Fannie Mae Appraiser Update – UAD 3.6
  • A Back to the Future Housing Market By Ryan Lundquist
  • Case Dismissed: Ohio Appraiser Wins Discrimination Lawsuit by Isaac Peck
  • Mortgage applications increased 12.5 percent from one week earlier

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Real Estate Agents and Comparable Sales – Tips for Appraisers

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What’s a comparable property? Or a “comp,” as we say more informally?

By Bryan Reynolds

Excerpts: Let me give you an example of an appraisal report I saw recently, which is why I’m asking this question: There are 65 comparable properties currently offered for sale in the subject’s neighborhood, ranging from a price of $330,000 to $5,400,000. The report also states that there are 44 comparable sales in the subject’s neighborhood within the past 12 months, ranging from $152,000 to $2.2 million. That’s a big range. Are you comfortable putting that in your report?

What does the term “comparables” even mean? Let’s go to the authoritative sources. Here’s one: The Dictionary of Real Estate Appraisal, published by the Appraisal Institute. It defines comparables as “a shortened term for similar property sales, rentals, or operating expenses used in the comparison in the valuation process and best usage. The thing being compared should be specified.” In other words, are you looking at comparable sales, comparable rentals, or comparable listings?

Lastly, I’m going to pull up the Encyclopedia of Real Estate Appraising. It’s a great big book, and it has a whole section on this. I highlighted one part of it because I like it: “What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.”

What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.” —Encyclopedia of Real Estate Appraising

That’s very simple, and it invokes some good, common sense

To read more, Click Here

My comments: Lots of opinions on this topic!

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29008552 – innovative yellow cubic houses built in rotterdam

Rotterdam’s Yellow Cube Homes

Excerpts: Both a popular tourist attraction and a strange architectural experiment, the cluster of 39 homes stands out amongst the city’s mostly modern architecture. However, that is what makes these “cube-perched-on-a-point” homes all the more interesting.

he elevated cubes are essentially houses supported on hexagonal piers; this design frees up the ground space for public use. Each cube measures 72 feet in height with each side measuring 25.5 feet. While the pillars and floor are made from reinforced concrete, structural wooden skeletons from the base for constructing the cubes were mounted on the floors’ edges. Interestingly, cement panels with rockwool insulation in the middle resulted in cutting down on almost all exterior sounds.

Inside, the complicated form meant that the interior walls were angled at 54.7 degrees with the floor. The consequences of this construction detail is that 25% of the almost 1,100-square-feet of living space is unusable because of the angular walls. The interior is divided into three floors that are connected by a narrow wooden staircase. The ground level houses in the living room and an open kitchen with plenty of windows. The second floor has two bedrooms, a bathroom, and a small living area. Finally, the third floor is a three-sided pyramid that can be used as a bedroom or an office.

To read more and see interior photos and floor plans, Click Here

My comments: Fascinating, with very good photos.

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