Comp One Blog - Your Local Expert!

The New Format Is Here folks.  The mandated transition date is 11/02/2026 but now is ramp up time.  This is a big deal.  I repeat: This is a big deal.  I've been working as an appraiser since 2002 and this is the most significant change I have seen in my time in this industry.   Us appraisers are getting up to speed, and many have completed their first reports by now, myself included.  If you are an agent, now is the time to familiarize yourself with the coming changes.  Here are a few highlights: 

-The appraisal report will be significantly more detailed, and the appraiser will be spending more time at the property for the inspection.  

-It is important to understand UAD quality and condition ratings.  Now, rather than just an overall quality and condition rating the appraiser will be providing an interior and exterior quality and condition rating, and then an overall quality and condition rating.  Understanding what these ratings are, how they impact value, and how your particular property is viewed will be essential for you in providing the highest level of service to your client.  See the document at this link for more information:  https://singlefamily.fanniemae.com/media/42396/display

-The turnaround time for the appraisal will increase.  We are entering a period where not only are appraisers learning a new report, many may be trying out new software or even multiple different softwares.  With the extended length and detail involved in the report plus the learning curve with a new software (or even the same software the appraiser has always used), there will be a period of time where a shortened contingency period may not be practical.  Some contingencies may be missed, some earnest money may be lost.  My advice is to allow extra time in the coming months for due diligence, etc and add a healthy dose of realism to your overall timeframes.  From personal experience I can say that my first report took much, much longer than a typical report, or even a typical complex report, not to mention the extended wait times on the two support calls I had to make including the one for the lender requested revision which took maybe a half a day in itself.  Lenders will have their own challenges with learning this new report, and many issues can come up in just getting to the point of the lender having an acceptable report to upload to the Uniform Collateral Data Portal.  

-Appraisal fees are going up, in general.  Some of this may level off a bit as the new normal establishes itself, but this report is significantly more detailed and time consuming which equals significant momentum in the industry towards higher fees.  

-This does not affect private work (pre-listing, cash purchases, divorce, estate, tax appeal appraisals) and non-conforming loans.  These can still be done on the old forms or in the old format.  

-Let's play nice.  This will be a challenging time for all industry participants, and particularly for appraisers.  Your patience and understanding is appreciated as we all navigate these changes together.

 

Questions about how to better serve your client in light of the coming UAD 3.6 transition?  I'm always happy to talk.  Call anytime at 404-245-7577

Cameron Horne, GACR253993
Comp One Appraisal Services, Inc.