SOURCE_AA8585
UAD 3.6: What the Biggest Appraisal Overhaul in Decades Means for Realtors
- FILE
- 327ed1dfcc126e6b4dbff2669bb3e9b5.mp4
- DURATION
- 49:50
- PROCESSED
- 08/16/2026 03:03
- WORDS
- 8,808
- SPEAKERS
- 3
- STATUS
- COMPLETE
EXECUTIVE SUMMARY
This episode of Who's in Your Corner is a live Q&A between host Brian and appraiser Tony Pollard, who has 23 years of experience, about the rollout of UAD 3.6 (Uniform Appraisal Dataset version 3.6), a new appraisal data standard set by the GSEs (government-sponsored entities) that Tony calls the biggest change he's seen in his career. The system has been in development for 8 years and is set to take effect November 1st. Its goal is to standardize where appraisal data lives in a report and tighten verification of that data so lenders can make loans with less risk, though Tony is skeptical of parts of it, noting there are still 6 quality and 6 condition ratings when he thinks that's too many.
Most of the conversation covers what will actually change and how realtors should prepare. Appraisers will collect more granular data in the field (wall heights, ceiling types, window and flooring photos) to feed what Tony describes as a massive database Fannie Mae is building. Only three software companies currently have a working 3.6 product, and Tony is already running a small number of live 3.6 appraisals himself, hitting glitches like a comp photo that keeps reverting on revision requests. He expects delays of at least a couple of weeks during the transition and recommends realtors build in a buffer of roughly 15 days to two weeks on closings, at least initially, though he stresses this is all hypothetical since nobody has been through a full cycle yet.
A recurring theme is that MLS data quality is about to matter a lot more. Fannie Mae is expected to cross-check comps against MLS listings, and Tony warns that vague broker remarks like 'updated' or 'remodeled' without specifics could get a comp excluded, or a listing hit with a different condition rating than the agent assumed. His concrete advice: use the actual UAD condition-rating vocabulary in listing descriptions, include a sketch or floor plan when square footage is estimated (AP), never combine square footage from below-grade space, garage conversions, or detached ADUs into the main living area, and give appraisers as much documentation as possible on any remodel, addition, or repair, but never hand over the inspection report. He also flagged that as-is listings can't get conventional financing if a home fails baseline safety, security, and soundness standards, regardless of what's written in the listing.
WHAT MATTERS MOST
- 01
UAD 3.6 goes live November 1st and is the biggest change to appraisals in over two decades of practice
An 8-year GSE effort to standardize appraisal data reporting and tighten verification is finally rolling out, with real timeline and process uncertainty because it hasn't been tested at scale yet.
- 02
Realtors need to build closing buffers and clean up listing data now
Tony's concrete, actionable advice is to add roughly a 15-day buffer to closings expected around the rollout and to get MLS listings using accurate UAD terminology before appraisers start cross-checking them more rigorously against Fannie Mae's data.
- 03
Square footage and condition ratings are the two things GSEs care about most, and are the easiest for agents to get wrong
Combining ADU, garage-conversion, or below-grade space into GLA, or using vague remarks like 'remodeled,' creates direct risk that a listing gets excluded as a comp or assigned an unexpected condition rating that affects value.
KEY TAKEAWAYS
UAD 3.6 is an 8-year-old GSE initiative launching November 1st
Tony explains the Uniform Appraisal Data Set has been in development for 8 years and has already been delayed 4 or 5 times in the last 3 years. Its purpose is to put all appraisal data in one uniform place and tighten data verification so lenders can issue loans with less risk.
Only three software vendors currently support 3.6, and bugs are still surfacing
Tony says there's limited competition in appraisal software right now, and appraisers using early versions are hitting real glitches, like a comp photo that keeps reverting to a different comp number every time he sends a revision. He's currently doing only 1-2 3.6 appraisals a week while revisions take days to process.
Realtors should build in a 15-day-to-2-week closing buffer
Asked directly what agents should do if November 1st were tomorrow, Tony's first answer was extending closing times, starting around 15 days as a buffer specifically for the appraisal portion of the process. He was clear this excludes potential delays on the lending and underwriting side, which he said is a separate unknown.
MLS remarks need to use actual UAD condition-rating language, not marketing fluff
Tony recommends realtors use the specific UAD vocabulary, like 'updated' versus 'remodeled', rather than generic marketing terms, because Fannie Mae will be cross-referencing MLS listings against appraisals. Vague or inflated descriptions increase the risk that a comp gets disqualified or a home is assigned a lower condition rating than the seller expected.
Square footage from ADUs, converted garages, and below-grade space can't be combined with main living area
Tony gave an example of a home advertised at 4,400 square feet that was actually 3,500, because a converted attic space above a garage had been folded into the total despite having a different access and construction quality. He said any space you must exit the main dwelling to reach, or that is below grade, has to be valued separately and can't be counted as gross living area (GLA).
There's no such thing as an as-is appraisal for conventional financing
Tony says he's seen roughly four listings in the last six months marketed as as-is that couldn't actually get conventional financing because they failed to meet Fannie Mae's minimum property requirements, safety, security, and soundness. He recommends realtors read the Fannie Mae, FHA, and VA selling guides to understand what disqualifies a property.
Give appraisers all documentation on updates, but never the inspection report
Appraisers are required under USPAP to evaluate any data given to them, so Tony encourages realtors to submit scanned PDFs listing exactly what was updated and when, since dates matter more than cost figures. He was explicit that inspection reports specifically should not be included.
Kitchens and bathrooms are the two areas the appraisal form specifically asks about
Tony notes the 3.6 form only asks two specific questions, about kitchen and bath condition, so those are the improvements most directly tied to a value bump. Other updates still matter for the overall condition rating, but aren't singled out on the form the way kitchens and baths are.
Turnaround delays often come from appraisal management companies and underwriters, not appraisers directly
Tony pushed back on the assumption that appraisers are the bottleneck, saying standard turn times are 5 business days (8-10 for VA depending on county), but AMCs and underwriters can add days or weeks of back-and-forth requesting more information.
RECOMMENDED ACTIONS
- Build in an approximately 15-day to 2-week closing buffer for transactions expected to close around or after November 1st.
- Review and clean up existing MLS listings so public remarks use accurate, UAD-consistent condition language instead of generic marketing terms.
- Obtain and study the UAD quality and condition rating definitions (Tony offered to send them) and use that specific vocabulary when writing listing descriptions.
- Include a sketch or floor plan with dimensions whenever square footage is sourced from an appraiser (AP) citation in a listing.
- Provide appraisers with as much documentation as possible on remodels, additions, and repairs, including dates, but do not include inspection reports.
- Before listing a property as-is, confirm it meets Fannie Mae/FHA/VA minimum property requirements, since as-is properties often cannot get conventional financing.
- Load the appraiser condition and quality rating criteria into the brokerage's internal AI tool (Ask CB) to help agents with property description prompts.
TOPICS
- Introduction to UAD 3.6 and why it's the biggest appraisal industry change in decades
- Background and timeline: 8-year GSE process, software readiness, November 1st rollout
- Impact on closing timelines and expectations for buyers and sellers
- MLS listing accuracy, broker remarks, and UAD condition/quality rating verbiage
- Square footage measurement rules, ADUs, garage conversions, and below-grade space
- Appraiser licensing path and industry workforce concerns
- Live audience Q&A: documentation, turnaround times, as-is listings, ADU valuation, additions/remodels, commercial appraisals