New Fannie Highest and Best Use Playbook

By on September 25, 2026   /   AI, appraisal, appraisal how to, Fannie   /   Leave a comment
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Newz: New Fannie Highest and Best Use Playbook, UAD 3.6 Nov. 2 and Other Deadlines??

September, 25, 2026

ARTICLE LIST:

In Order, Scroll down the page to read

  • LIA AD: Conflicting Assignments and Professional Ethics
  • New Fannie Highest and Best Use Playbook and Q&As
  • For the Price of a San Francisco Condo, You Can Buy a 400-Acre Historic Marshland Retreat
  • UAD 3.6 — Whose November 2 Deadline Is It? There are many dates!! By Doug Smith, SRA
  • MY AD: Make use of your driving time by exercising
  • Rethinking Private Appraisal Delivery: Building Interactive Web Reports with AI By Dustin Harris
  • MBA stats: Mortgage applications decreased 1.5 percent from one week earlier

 

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New Fannie Highest and Best Use Playbook and Q&As

By Dave Towne

For those of you doing (or will do) the New URAR/UAD 3.6 mortgage lending reports from now into the future, you need to read and understand this new policy change from FannieMae. Because this new UAD report process also applies to FreddieMac, my presumption is they will issue a policy statement of their own with similar wording.

For the time being, here is the FNMA new policy, issued on Sept. 2, 2026: Highest and best use requirements for Uniform Appraisal Dataset (UAD) 3.6

This policy updates the highest and best use requirements for appraisal reports completed using Uniform Appraisal Dataset (UAD) 3.6.

These changes apply only to UAD 3.6 appraisal assignments to support the new Uniform Residential Appraisal Report (URAR) reporting requirements and do not apply to appraisal reports completed using legacy appraisal report forms.

We updated our policy to:

• require the property’s highest and best use, as improved or as proposed, to be a residential use, rather than requiring it to be the property’s present use;

• define present use, residential use, and subordinate use in the context of highest and best use;

• require the property to be a primarily residential one- to four-unit property, with any non-residential use subordinate to the residential use, replacing the previous “residential in nature” guidance; and

• establish the eligibility criteria and reporting requirements for one- to four-unit residential properties when the present use does not satisfy one or more of the highest and best use tests.

The UAD 3.6 Policy Supplement has been updated to reflect these changes.

Effective: This policy change is effective immediately for appraisal reports completed using UAD 3.6.

Remember, to be USPAP compliant, you can’t “just check the box” on the New URAR/UAD 3.6 data base input field (or on the Legacy forms either) to indicate ‘present use,’ and then move on. You must add a written statement in that site section comment input field explaining why you decided that is the accurate use of the property. Craft your statement to comply with the above policy.

Also remember this: if you decide the property’s H&BU is not Residential use, you must check the box “No.” In most cases, when you do that, the need to complete a full appraisal report ends at that point because the lender cannot proceed with a residential mortgage loan. Your statement needs to define what the actual use is if not Residential. Stop working on the report and contact your client to fully explain the current situation. Let them determine how to proceed.

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What is in Fannie’s New The Highest & Best Use 25 page Playbook (Per Fannie)

• This playbook provides key concepts and illustrative scenarios to help industry participants better understand how the results of the highest and best use (HBU) may affect loan eligibility.

• Each scenario presents a complex highest and best use question based on the specific circumstances of a subject property. While every property has its own unique characteristics and circumstances, which may lead to different conclusions, these scenarios are designed to demonstrate how you can apply Fannie Mae policy consistently across a range of situations. They are intended to provide practical guidance and support informed, policy-compliant decision-making.

• A resolution is provided for each scenario, along with the appraiser and lender responsibilities with relevant Fannie Mae Selling Guide Supplement: Uniform Appraisal Data (UAD) 3.6 Policy resources.

• The Highest and Best Use Frequently Asked Questions document addresses common questions related to present use, highest and best use, mixed-use properties, analysis of subordinate uses, comparable sales, the URAR, and loan eligibility. The document is available separately and linked throughout the Playbook for easy reference.

To read the Highest and Best Use Playbook, Click Here

To read the separate FAQ document, with 27 Q&As, Click Here

My comments: Many thanks (again) to Dave Towne for writing a summary of the 25 page document at the top of this article. To subscribe to his regular emails, send an email to dtowne@fidalgo.net . Say that you want to subscribe to his list. I have been subscribing for many years.

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For the Price of a San Francisco Condo, You Can Buy a 400-Acre Historic Marshland Retreat

Excerpts: 16 bedrooms, 5,OOO sq.ft., 399.95 acre lot.

400-acre marsh property which has served as hunter’s have for more than a century has hit the market for $1.5 million.

Concord Farms Duck Club in Suisun City, CA consists of a 16-bedroom, three-bathroom clubhouse.

“It’s just a place where these guys can go out and shoot ducks. It’s been going on for like 100 years plus,” explains listing agent John Ward with California Outdoor Properties. He adds that the hunters take boats out to duck blinds in the marsh where they wait.

“You have your duck call and your shotgun, and you start blowing your whistle or your duck call, and hopefully some birds come in.”

Ward says there are about 160 duck clubs in the Suisun Marsh area, with many of them dating back more than a hundred years. Hunters buy memberships in the clubs.

“There’s just kind of a changing of the guard a little bit now with some of the older guys just getting older,” Ward says.

“[With] this particular club, the members took a vote and decided whether they were going to make an effort to try to get new blood into the club, or [if] they were all kind of ready to hand the torch to the next group. So, they just decided to sell the property.”

The property consists of a 16-bedroom and three bathroom clubhouse, a building which has its own history.

“It’s basically an old barge. They had crews that came in 100 years ago to help build the levees and do a lot of the work out there,” he explains. “So some of these barges turned into duck club houses because they built the levees around them. The men back 100 years ago used those [barges] for their quarters to sleep at night.”

That clubhouse is where the hunters gather after they reach their limit of seven ducks.

“They’ll take their boat back to the club and then make a make a breakfast or a brunch or whatever, and then usually the guys just kind of hang out in the club, and watch college football, watch the NFL, or whatever they want to watch, and it’s usually just kind of a hang [out place].”

My comments: My first appraisal job was in Northern California at the Butte County Assessor’s office. I knew nothing about duck hunting. Many of the guys working there were avid duck hunters, one of the reasons they worked there. I had heard about duck clubs but had never seen one. Fascinating! I learned how they did the hunting, but never tried it.

To see the listing, with many photos, Click Here.

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UAD 3.6 — Whose November 2 Deadline Is It? There are many dates!!

By Doug Smith, SRA

Excerpts: November 2 is not the deadline for the appraiser to deliver a UAD 2.6 appraisal to the lender or AMC. It is the deadline for a new UAD 2.6 appraisal to have already made its initial submission to UCDP.

That distinction matters.

An appraiser could complete a legacy UAD 2.6 appraisal before November 2 and deliver it to the client before November 2—and it could still be too late. If its initial submission to UCDP occurs on or after November 2, UCDP will return a Fatal message and a “Not Successful” status.

The GSE transition timeline provides a remarkably clear example. A UAD 2.6 appraisal is ordered on October 1. It is not initially submitted to UCDP until November 5. The result: Not Successful. The timeline states that UAD 2.6 appraisals must be submitted to UCDP before the mandate or converted to UAD 3.6.

So an appraiser looking at November 2 as “the last day I can finish a legacy appraisal” is looking at the wrong date.

The appraiser’s practical deadline has to be earlier.

To read the full article, Click Here

Editor’s Note: There was no link available for this article online. It is posted on my blog. Every blog post has a link. Putting it on a separate web page is a hassle. I have my weekly email newsletters back to 2012 posted every week on my blog. I will be doing this for articles that are too short for my monthly newsletter, but are very interesting.

My comments : Read this article if you will be doing UAD 3.6 Appraisal reports. UAD 3.6 vs. 2.6 and many other topics are covered. I had never read a detailed description of all the changes and deadlines when UAD 3.6 is adopted. I had just read about “bits and pieces”, and rumors. Thanks to Doug for writing this.

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Make use of your driving time by exercising

Appraising is a fairly sedentary job, with most of the time spent sitting in a

car or at a desk. Do you take time to exercise every day? Do feel stressed out

when you are running late for an appointment? Do you feel stressed as a deadline approaches?

One of the best and worst times in appraising is driving. Working out in the

field is what attracted many of us to appraising, including myself. But the time

spent driving is unproductive time.

There are so many stresses today. Exercising is a great stress reducer!

Although the exercises below are for driving, many can also be used in your

office.

I have a personal trainer and exercise almost every day at home and a gym

close to my house. I always listen to podcasts while exercising. Exercising while driving takes no extra time!

Shoulder exercises

Do “shoulder shrugs” where you bring your shoulders up to your ears, one at

time, then both. Drop your shoulders quickly, focusing on the relaxed feeling.

Arm and hand exercises

For steering wheel exercises, put your hands in the 10:00 and 2:00 position.

Squeeze the steering wheel tight, pushing inward for 2-3 seconds, then release.

Keep a relaxed grip on your steering wheel, to keep tension from moving up

to your face, neck, and shoulders. One at a time, lift your fingers off the steering wheel, then lightly put them back.

To read more about this topic, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

If this article helped you learn how to do exercising while driving, it is worth the subscription price!

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The 3.6 Rollout: Chaos Now, Clarity Later?

By Logan Dorman · Published September 18, 2026 · Updated

Excerpts: The 3.6 rollout has raised more questions than answers, leaving the industry navigating a landscape that remains unclear.

UAD 3.6 has dominated the appraiser conversation on LinkedIn, yet the irony is that almost nobody truly understands it. That isn’t the fault of appraisers. Even the most experienced professionals and the people positioned as “3.6 experts” have more questions than answers. I recently listened to a panel of appraisers I respect immensely, and even they acknowledged the gaps. The truth is simple: people may be preparing for 3.6, but nobody is fully ready. Admitting that doesn’t make anyone less competent. It reflects the reality of the rollout.

What the industry does have is an abundance of opinions. Some defend the new structure, others condemn it. While the underlying intent of 3.6 may have merit, the rollout has been undeniably chaotic. Functional software is lagging, training has been insufficient, and critical questions remain unanswered. These issues trace directly back to the decision‑makers who pushed the system forward without adequate preparation. But assigning blame won’t solve the problem. The only productive path forward is patience.

There is, however, a positive outcome that has received little attention.

UAD 3.6 will separate the wheat from the chaff. AMCs that rely on low‑fee, high‑volume “rubber stamp” appraisers will struggle because those appraisers will not be able to hide substandard work behind the new level of required detail. While the purpose of 3.6 is to improve the quality of the appraisal report, an important side effect is that it will also highlight the quality of the appraiser. Not all appraisers operate at the same level, and 3.6 will make that impossible to ignore.

To read the article and over 50 appraiser comments, Click Here

My comment: Good to read something positive about UAD 3.6!

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Rethinking Private Appraisal Delivery: Building Interactive Web Reports with AI

By Dustin Harris

Excerpts: When was the last time a private client told you they actually enjoyed reading your appraisal report? Not “thanks, got it.” Enjoyed it. Sat down, read it, understood it, maybe even showed it to somebody.

I’m guessing never. And I don’t blame the client one bit.

Our reports are built for underwriters and algorithms and secondary market compliance. That’s fine, that’s what they’re for. But when a homeowner, or a divorce attorney, or an estate executor gets that same 35-page PDF with the grids and the boilerplate and the standardized fields, they don’t feel informed. They feel buried.

An interactive web report flips all of that. You’re not handing them a document anymore, you’re meeting them where they already live, which is on their phone, scrolling.

So what does this actually look like? Picture sending your client a password protected link along with their formal report. They open it up and right at the top is a great photo of the property with your value opinion and effective date front and center, no hunting required.

To read more, Click Here

My comments: Very interesting! Definitely worth trying. No UAD 3.6 for non-lender appraisals!

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NO UAD 3.6 UPDATE THIS WEEK FROM ME. SEE DOUG SMITH’S ARTICLE ON “MANY DEADLINES!” ABOVE

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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 in 2026

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Mortgage applications decreased 1.5 percent from one week earlier

WASHINGTON, D.C. (September 23, 2026) — Mortgage applications decreased 1.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 18, 2026. Last week’s results included an adjustment for the Labor Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week and was 62 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 11 percent lower than the same week one year ago.

“Mortgage rates vaulted higher last week, with the 30-year fixed rate at 7.12 percent – the highest level since May 2024. With fixed rates much higher, more borrowers opted for ARMs, with the ARM share reaching 9.8 percent, as rates for 5/1 ARMs were more than a percentage point lower than those for fixed rate loans,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Applications for both refinance and purchase loans declined further last week, noting that the comparison is to the week that included the Labor Day holiday. With this week’s decline, the pace of refinancing fell to its slowest pace since February 2025.”

The refinance share of mortgage activity decreased to 39.3 percent of total applications from 39.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.8 percent of total applications.

The FHA share of total applications decreased to 16.7 percent from 16.9 percent the week prior. The VA share of total applications decreased to 12.0 percent from 12.4 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 7.12 percent from 6.97 percent, with points increasing to 0.73 from 0.72 (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 7.15 percent from 7.03 percent, with points decreasing to 0.53 from 0.59 (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 6.78 percent from 6.62 percent, with points increasing to 0.96 from 0.85 (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 6.43 percent from 6.30 percent, with points increasing to 1.15 from 0.98 (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 6.10 percent from 6.23 percent, with points decreasing to 0.76 from 0.99 (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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Defending Adjustments for Appraisers

By on September 4, 2026   /   adjustments, AI, AMCs, appraisal business, GSEs, UAD 3.6   /   Leave a comment
Tags: , , , , , ,

Newz:  GSEs Request Feedback on UAD 3.6, Defending Adjustments

September 4 , 2026

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

  • LIA AD: Too Late for a Reconsideration of Value
  • How to Defend Adjustments in Appraisal Reports
  • $112 Million Laguna Beach Mansion With a Private Library and a Rotating Bed in Primary Suite Could Become Priciest Home Ever Sold in Orange County
  • GSEs Request Appraiser Feedback on UAD 3.6
  • MY AD: How AI Can Help Residential Appraisers and Why Appraisers Will Always be Needed By By David Galatto
  • First the Borrower Fee. Now the Appraiser Compensation in Court By Kenneth J. Mullinix
  • The part of the process appraisers never see, and the reason your file keeps coming back
  • UAD 3.6 UPDATE – Inspection Checklist, New Survey: UAD 3.6 mandate is Nov. 2nd. Are you ready for it?,
  • MBA STATS: Mortgage applications increased 0.8 percent from one week earlier

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How to Defend Adjustments in Appraisal Reports

When someone questions an adjustment, many appraisers respond, “It’s based on market data” or “my experience in the market.” These statements might be true, but they don’t support the adjustment. They just state where it came from.

Appraisal reports are similar to scientific papers. A scientist can’t write “Based on my experiments, the hypothesis is correct” and expect peer review to accept it. Scientists need to share their methodology, summarize their analysis, and support their conclusions.

The same applies to appraisal adjustments. Saying you used market data is like saying you conducted an experiment. It’s just the starting point. Your report needs to summarize how you analyzed the data and how it supports that specific adjustment.

Without this documentation, you haven’t provided credible analysis. You’ve stated an unsupported opinion, regardless of your experience.

You need a clear path from market evidence to the number on your grid. Defending appraisal adjustments isn’t one perfect technique. It’s about using multiple, credible methods, explaining your logic, and sequencing your work so it aligns with how the market behaves and with USPAP.

Below is a practical, step-by-step approach you can put to work right away.

Start with the Right Sequence

Before you calculate any adjustment, get the order right. In practice, you should follow this sequence:

  • Apply transactional adjustments:
  • Real property rights conveyed
  • Financing terms
  • Conditions of sale
  • Expenditures made after purchase
  • Market conditions (time)
  • Apply property adjustments:
  • Location
  • Physical characteristics (e.g., finished square footage, bathrooms, garages, condition, quality)

Transactional adjustments affect the overall transaction price, and each adjustment creates a new base for the next one. They answer the question, “What would this comparable have sold for under typical terms on my effective date?”

These adjustments normalize the sales by removing distortions from unusual financing, non-market conditions, or time differences.

Equalize Market Conditions Before You Compare

Read more!! →

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraiser

By on May 29, 2026   /   AI, bias, state appraiser regulators, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: UAD 3.6 Adapt or Step Back,

Getting Started With AI

May 29, 2026

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

  • LIA AD: Too Late for a Reconsideration of Value
  • Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers, By Rachel Mann
  • 109-Year-Old ‘Boathouse’ That Appears To Float on Washington Canal at High Tide Hits the Market for $2.1 Million
  • Getting Started with AI for Appraisers
  • MY AD: Loose Lips Cause Claims (Loose Lips Lead to Lawsuits) By Claudia Gaglione, Esq.
  • Wells Fargo Settles Mortgage Discrimination Suit With $100M Fund To Help Low-Income Homebuyers
  • HB 355 and What Every Appraiser Should Learn from Kentucky’s Legislative Win, By Bryan S. Reynolds, MNAA
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers

By Rachel Mann

Behind the technical transition lies a more personal question: Is it worth starting over at this stage of a career?

Excerpts: A Profession Split in Real Time

While there’s plenty of buzz around UAD 3.6 itself, it’s worth taking a boots-on-the-ground look at what active appraisers are actually feeling. In a recent industry poll conducted on Facebook, the findings were telling.

Out of 233 responses from active appraisers, 36.5% reported they are actively preparing, while 36.1% are taking a “wait and see” approach. The remaining responses, which we’ll get into below, reveal the deeper undercurrents.

The clear takeaway is that the industry isn’t aligned. There’s real uncertainty in how appraisers are responding to the shift, and a large unknown hanging over the profession.

And it raises a question: Is the uncertainty driven by the change itself, or by the lack of clear options for what happens next?

Appraiser Voices: Real Reactions to UAD 3.6

Beyond the “actively preparing” and “wait and see” camps, smaller groups of respondents revealed the deeper anxieties at play.

About 8.2% cited concerns about the learning curve, 4.7% said they’re considering stepping back from volume, and 2.6% plan to retreat into private work only.

Another 12% fell into smaller categories ranging from software testing readiness and hardware concerns to skepticism about implementation timelines.

The overall picture is a mix of readiness, hesitation, and resistance — revealing capacity limits and decision fatigue at a critical moment: adapt or step back? The underlying question for those nearing retirement is: Is it worth the time, cost, and effort to adapt at this stage in my career?

When a Workflow Change Becomes a Career….

A sudden decline in active appraisers could carry real consequences:

  • Loss of experienced appraisers who currently make up the majority of the workforce
  • 2. Disruption of long-standing client relationships, leaving lenders, AMCs, and homeowners scrambling
  • A thinning mentorship pipeline for new appraisers, weakening the path forward for the next generation
  • These changes, paired with the lack of exit planning, have broader implications. This isn’t an individual issue; it impacts industry stability and continuity.

To read more, Click Here

My comments: Worth reading the entire post for the details and interesting comments.

Read more!! →

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Appraising Solar Panels

By on April 3, 2026   /   adjustments, AI, appraisal how to   /   Leave a comment
Tags: ,

Newz: Solar Panels, Concessions, AI and Appraisals

April 3, 2026

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

  • LIA AD: Navigating Red Flags: a Contentious Divorce Case
  • What Is the Appraisal Value of Solar Panels? FAQs for Residential Appraisers
  • Tiny New York Home With No Bedrooms Hits the Market for a Bargain Price
  • Concessions Are Not the Price: How to Measure What the Market Is Actually Doing
  • MY AD: How to reduce stress to be more productive in business and a happier life for appraisers
  • My First 50 Years by Steve Papin
  • AI Usage in Appraisals: Trust but Verify by Jo Traut
  • MBA STATS: Mortgage applications decreased 10.4 percent from one week earlier

 

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What Is the Appraisal Value of Solar Panels? FAQs for Residential Appraisers

Excerpts:

How Common Are Solar Panels in Residential Appraisals?

Solar panels are increasingly common. Declining system costs, government tax incentives, and utility rebates have made solar PV ownership more accessible than ever. If you haven’t encountered an owned solar system on a subject property yet, there’s a good chance you will soon—particularly as more states push toward renewable energy goals.

The practical takeaway: developing a working knowledge of solar valuation now puts you ahead of the curve.

Topics:

Owned vs Leased Solar Panels—and Why It Matters for Appraisers

How Do You Determine the Appraisal Value of Solar Panels?

  • Sales Comparison Approach. This is the preferred method under Fannie Mae and FHA guidelines.
  • Cost Approach Solar PV systems are typically priced on a cost-per-watt or cost-per-kilowatt basis.
  • Income Approach This method estimates value based on the energy savings the system produces.

What Do You Do When There Are No Comparable Sales with Solar Panels? This is the question appraisers ask most often, and it’s a real challenge in many markets.

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What Are the Key Components of a Solar PV System that Appraisers Should Be Able to Identify?

How Can Appraisers Build Competency in Solar Valuation?

Solar PV systems are one piece of a broader green home appraisal niche that’s growing fast.

To read more, Click Here

My comments: Very comprehensive analysis of the important factors. I have never appraised a home (or apartments and commercial properties) with Solar. I live in a “Mediterranean” climate in the San Francisco Bay area. No big changes in weather over the year. No snow, no high heat etc. But I have heard appraisers discussing the topics above. If I appraised Solar in a home I would use this article.

Read more!! →

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UAD 3.6 and Appraisal Workflow

By on March 13, 2026   /   AI, humor, real estate market, statistics, UAD 3.6, Uncategorized   /   Leave a comment
Tags: , , ,

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.

Read more!! →

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Paired Sales for Appraisers

By on February 27, 2026   /   adjustments, AI, appraisal business   /   Leave a comment
Tags: , , ,

Newz: Paired Sales Analysis, AI and Appraisers?

February 27, 2026

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

  • LIA AD: When Confidentiality Agreements Conflict with USPAP
  • Paired Sales Analysis: Tips and Tools for Appraisers
  • Converted Church With Bell Tower and Pulpit Lists for $225K
  • Determining Assignment Conditions in a Vacuum By Jo Ann Aposto
  • MY AD: An Appraiser Gets Audited by the IRS! My Story Don’t Make My Mistakes! By Ann O’Rourke
  • Artificial Intelligence: Friend or Foe of Appraisers?
  • Fed moves to pull mortgages back into banking fold
  • MBA: Mortgage applications increased 0.4 percent from one week earlier

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Paired Sales Analysis: Tips and Tools for Appraisers

By Kevin Hecht

Excerpts: 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.

This guide presents a step-by-step approach to performing paired sales analysis, practical tips and tools to improve your accuracy, plus strategies to overcome common challenges like sparse comparable data.

Paired Sales Analysis Example

For example, suppose two very similar homes in the same neighborhood sell within three months of each other. One house has a separate two-car garage, while the other does not. If the garage-equipped home sold for $15,000 more, you can reasonably infer that the garage adds $15,000 in value.

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)
  • Additional structures (workshops, guest houses, storage buildings)
  • Land size variations or irregular lot configurations

TOPICS

  • What is paired sales analysis
  • Step-by-Step Methodology of a Paired Sales Analysis…
  • Paired Sales Analysis Tips and Best Practices
  • Additional Tips Shared by Appraisers
  • Overcoming Challenges: What to Do When Data Is Sparse

To read more, Click Here

My comments: Comprehensive and definitely worth reading. I have regularly used paired sales, when I could find good comps. I often go back in time, as market conditions adjustments are easy to do. I got a few new ideas I had not thought of before in this article.

Read more!! →

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UAD 3.6 Appraisal Fees

By on February 6, 2026   /   AI, AMCs, Appraisal fees   /   Leave a comment
Tags: , ,

New URAR and UAD 3.6 Appraisal Fees, AMC Tech Fees

February 6, 2026

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

  • LIA AD: Using trainees – the safe way
  • Will the New URAR and UAD 3.6 Impact Appraisal Fees?
  • It looks like an SF apartment complex. It’s actually a $32M estate.
  • From Dealerships to AMCs: Tech Fees as the New Normal by Desiree Mehbod
  • MY AD: New in the February 2026 issue of Appraisal Today. Book Review: Mein Comp: The Last Appraiser
  • “Because Houses Are Human” AI and Appraisers By David Hyman
  • Architecture Is About to Grow a Nervous System
  • Buildings that are alive
  • MBA: Mortgage applications decreased 8.5 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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Will the New URAR and UAD 3.6 Impact Appraisal Fees?

Excerpts: With the new URAR and UAD 3.6 rolling out this year, you may be wondering what effect this will have on your fees. While there’s still a lot of uncertainty and speculation around this question, we’re sharing the opinions of professional real estate appraisers who answered our survey, “How do you anticipate the new URAR/UAD 3.6 changes will impact your appraisal fees?”

FEE INCREASES

Over 40% of respondents said they expect their appraisal fees to increase. Still, many respondents (28%) said they anticipate that fees will remain static, and 31% said they are not sure yet. Read their comments below to learn why or why not some appraisers believe their fees will increase with the new URAR and UAD 3.6.

APPRAISER RESPONSES

I Expect Fees to Increase” (41%)

“I have had ample time to practice the new 3.6 through my software and the inspection time will be increasing substantially…. Inspections are going to take some time especially if the dwelling is more than 1,000sf, which most in my market area are well above that. The report cannot be submitted until all sections are 100% complete, so there will be more time contacting agents, homeowners, town facilities, etc. Hoping the learning curve will be quicker than it appears at this point in time.”

I Expect Fees to Stay About the Same” (28%)

FEES REMAIN THE SAME

“I think it will be more labor intensive in the field but easier once you get back to the office.”

“I expect fees to stay the same. There may be less form filling; however, the analysis will remain the same. It’s not about the form or the analytics tools we use; it’s the analysis itself.”

The Bottom Line

While many appraisers anticipate that UAD 3.6 and the new URAR will initially require more time, tighter workflows, and new technology investments, the longer-term outlook is more balanced and, in many ways, promising.

Transitions of this scale often come with short-term growing pains, but clearer data standards, more structured reporting, and modernized tools are designed to create greater consistency and efficiency once the learning curve levels out. As several respondents pointed out, it will take real-world experience to understand where timelines and workloads ultimately settle.

At the same time, the new form offers appraisers a stronger platform to demonstrate the depth of their analysis, judgment, and market expertise.

To read more, Click Here

My comments: THIS IS THE HOTTEST TOPIC IN RESIDENTIAL LENDER APPRAISING. Appraiser opinions are useful but we all want to know what AMCs are planning for fees. I anticipate higher fees by AMCs, borrowers and direct lenders. I have been writing about what is happening since early this year, including details of all the “questions” and uncertainties on the SFR report.

Another significant fee factor is that many appraisers are retiring or quitting because they don’t want to learn the UAD 3.6 for appraisers. Those who stay will have lots of appraisal work as the 11-2-26 mandatory deadline approaches.

UAD 3.6 is not mandatory until November 2, 2026. The Legacy forms will be used during the transition. Will it be done by 11-2-26? Now, software vendors and lenders are way behind. 11-2-27 new mandate date???

On the plus side, 41% of appraisers said fees would go up and are positive about the new reports.

Read more!! →

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AI and Appraisers

By on January 30, 2026   /   AI, appraisal, Appraisal Qualifications Board, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: UAD 3.6 Started for Lenders, AI and Appraisers

January 30, 2026

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What AI Means For Appraisers

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

  • LIA AD: Safety issues not fixed
  • 7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay) By Mark Buhler
  • EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million
  • Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education by Timothy Andersen
  • MY AD: Appraisers’ Guide to the New URAR by Dave Towne
  • GSEs: Available Now in Broad Production: UAD 3.6 and Forms Redesign
  • URAR: Expect The Unexpected. How UAD 3.6 affects lenders
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

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7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay)

By Mark Buhler

A while ago I wrote about “7.5 Things Appraisers Can Do That Artificial Intelligence Cannot”—the human parts of the job AVMs and algorithms still can’t touch: judging condition and quality, interpreting oddball features, smelling the house, defending adjustments, testifying in court, and exercising professional judgment under pressure.

None of that has changed.

What has changed is the toolset. AI is already doing parts of the workflow faster, cheaper, and more consistently than most humans—not the appraisal itself, but much of the heavy lifting underneath it:

Data gathering and sorting

Pattern detection

First-draft writing

Basic consistency and error checks

You will not beat AI at those tasks. The good news is you do not need to.

7.5 Tools you need:

1. Sifting Massive Datasets for Patterns

2. 2. Generating a First-Pass Comp Set

3. Producing Market Metrics and Adjustment Support on Demand

In my first article, I argued that AI cannot judge condition, interpret quirks, smell the house, testify in court, or exercise professional judgment. That remains true.

What has changed is the gap between appraisers who leverage AI and those who pretend it does not exist. The market is looking for valuation professionals who can…

To read more, Click Here

My comments: Definitely worth reading, including all 7 of the Tools.

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EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million

Excerpts: 7 bedrooms, 7.5 baths, 7007 sq.ft., 0.47 acre lot, built in 2018

It was the unobstructed views out over the water that first drew the tech expert to the property, as well as the privacy offered by its location in a secure gated community, and the fact that the Bahamian island chain of Bimini is just a 1.5-hour boat ride from the home’s dock.

From the outside, the home could be mistaken for a resort thanks to its lavish pool, built-in barbecue, firepit lounge, outdoor kitchen, expansive waterfront terraces, and a basketball or volleyball court by the water—all of which make for a rare backdrop of relaxation and play.

Elsewhere on the grounds, there are two private docks that accommodate a superyacht of more than 100 feet, a 30,000-pound boat lift, and access to Biscayne Bay.

To read more, Click Here

To see the listing with an aerial view, virtual tour and 60 photos, Click Here

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Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education

by Timothy Andersen, MAI The Appraiser’s Advocate

Excerpts: It is the premise of this essay that critical thinking, analytical rigor, integrative synthesis, and dialectical method are indispensable to the cultivation of competent real estate appraisers and the concomitant production of credible appraisals and non-misleading appraisal reports.

Yet, curiously, these conceptual pillars are either wholly absent or conspicuously marginalized within the current corpus of real estate appraisal qualifying education (QE). That QE in its present form is devoid of any formal engagement with these concepts suggests a foundational deficiency that imperils the credibility of both practice and pedagogy.

Appraisal is, at its core, a dialectical enterprise. The seller posits a value—often broker-influenced and aspirational. The buyer counters with skepticism and a desire for a discount. The broker inserts pecuniary incentives into the mix, motivated by the commission structure. The appraiser is thrust into this cauldron of competing value claims, charged with the burden of arbitrating truth. The appraiser must navigate opposing viewpoints, adjudicate conflicting data, and deliver a resolution rooted in evidence and reason.

In this sense, each appraisal is a dialectical negotiation, an intellectual endeavor wherein the appraiser becomes not merely a market technician but a philosophical mediator. Such work demands a skill set that far exceeds the filling of forms or the clicking of dropdown menus. It requires a mind trained in critical discernment, analytical rigor, synthetic coherence, and dialectical resolution, not merely in filling out a reporting form.

Yet, current appraisal QE and CE, and some of their providers, entrenched in their pedagogical inertia, fail to cultivate these competencies. They privilege mechanics over meaning, technique over thought. The consequence of such tactics is clear: we produce technicians, not scholars; form-fillers, not thinkers.

To read more, Click Here

My comments: This article explains what is missing in classes required for licensing. What you learn when first starting appraising is very, very important so you don’t have to try to learn it later.

Unfortunately after licensing started many new appraisers had not very good education. The appraisal professional associations, such as the Appraisal Institute (and predecessor associations) would not offer trainee classes. They only offered classes for getting designations. I had to refer them to the local “how to fill out a form” classes which were not very good.

The plan for appraisers to train appraisers did not work out well for many new appraisers. Appraisers lacked experience in teaching and did not want to take the time to train appraisers. Prior to licensing, most appraisers were staff appraisers at lenders who provided training. I was trained at an assessor’s office.

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Train the Trainer Class for GSEs New URAR and UAD 3.6

Appraisers’ Guide to the New URAR

In the May 2025 issue of Appraisal Today

By Dave Towne

Excerpts: Quality and Condition Ratings Updated and Appendix F-1

We learned that the Definitions for Q and C have been updated for more

clarity.

These will be in a new Appendix F-1, (available on the GSE web sites) which

appraisers should review BEFORE beginning to do UAD 3.6 URAR Reports!

I have to keep F-1 running in the background on my computer, and will do

that when teaching. F-1 is about 350 pages and shows most all entries that are required on the new reports.

Secondly, the Report will allow for better reporting of Q & C ratings for

various components. And additional property amenities can be selected from a list or drop-down.

In most cases, the Report will involve both office desktop and field tablet

inputting of data… which at this point appears to be more comprehensive than is currently required. Will the lenders recognize this fact, and correspondingly tell their lending client that the “appraisal Report” will cost more than what it might have in the past?

More importantly, will appraisers quit accepting low-ball fee assignments?

These are unknown at this point.

One more point, based on my review of the class material: this new process

is demanding a much more intensive and precise gathering of property detail than appraisers currently do.

It will take more time to do in the field than appraisers currently spend, and if

the appraiser transfers the field data back to their office desktop for completion, that will entail more time.

The ability to do complete inspections with a piece of paper on a clipboard is

going to end. A tablet or large smart phone is strongly recommended.

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Available Now in Broad Production: UAD 3.6 and Forms Redesign

UAD 3.6 and Forms Redesign Broad Production Period is here.</