The Appraisal Process Is Changing. Here’s Why Homeowners Should Care.

Most people do not wake up in the morning wondering about property appraisal reporting standards.

And frankly, if you do, we may need to get you a hobby.

But there is a major change coming to the real estate appraisal world called UAD 3.6, and while the name sounds like a software update you would rather ignore, the

impact is worth understanding if you plan to sell, buy, refinance, or renovate a home.

In plain English, appraisal reports are becoming more detailed, more standardized, and more data-driven.

That matters because an appraisal is not just a formality. It can affect whether a buyer’s loan moves forward, whether a seller’s contract stays together (at the agreed upon sales price), and whether everyone makes it to the closing table without unnecessary drama.

The big shift is this: appraisers will be working with a more structured system that requires clearer, more consistent property information.

For homeowners, that means documentation matters more than ever.

If you replaced the roof, remodeled the kitchen, finished the basement, upgraded the

HVAC, added new windows, improved drainage, added insulation, replaced flooring, or made other meaningful improvements, keep records. If your new roof has a 15-year or a 50-year shingle warranty, it is not too hard to see what matters. So...

• Dates matter.

• Receipts matter.

• Permits matter (for additions or upgrades.)

• Before-and-after photos matter.

• A written list of improvements matters.

This is not a brand-new concept to how I approach listings.

For quite some time, I have been collecting this kind of information from sellers before a home ever hits the market.

Not because it makes for exciting cocktail conversation - it does not - but because it helps build a cleaner, more credible case for percieved "value" when being marketed. And actual "value" when being appraised.

Many buyers pass judgment before examining the whole picture, but educated buyers love to pore over that kind of information.

When I prepare a listing, I want to understand the home beyond the obvious: the visual cues as to what has been updated, what has been maintained, what work was permitted, what repairs and investments were made, what features may not be immediately visible, and how the property compares to recent market activity.

That does not mean trying to influence an appraiser. Appraisers must remain independent, and that is exactly how it should be. But there is a big difference between pressuring an appraiser and providing accurate, organized, market-relevant information.

One is inappropriate.

The other is professional. And many appraisers appreciate the assistance from the listing agent.

This also does not mean you can hand an appraiser a stack of receipts and magically add every dollar back into value. A $75,000 renovation does not automatically mean your home is worth $75,000 more. Wouldn’t that be nice?

But good documentation helps tell the story clearly. It gives the appraiser facts, not guesses.

For sellers, this is especially important. Before your home goes on the market, your agent should help you organize a simple improvement summary. Not a novel. Not a scrapbook. Just a clean, professional list of the work completed, approximate dates, permit information when applicable, and supporting photos or receipts/invoices and/or warranties when available.

For buyers, this change matters too. If you are paying a premium for a home because it has been renovated, expanded, or improved, the appraisal still needs to be supported by comparable sales and market data. Emotion may help win the offer and turn it into a contract, but contract and the supporting data still has to survive the loan process.

The bigger point is simple: real estate is becoming more information-driven. The days of vague listing remarks, missing square footage details, undocumented improvements, and “just trust me” pricing are getting less forgiving. That is a good thing for serious homeowners and careful buyers.

A strong real estate strategy is not just about marketing a home beautifully. It is about building a credible case for value: accurate MLS information, clear renovation records, honest property details, good comparable sales, and a calm, organized process.

UAD 3.6 is not something homeowners need to panic about. But it is a reminder that preparation matters.

If you are thinking about selling in the next year or two, start gathering your home improvement records now. When you are ready, I can help you turn that information into a clear, market-supported listing strategy, one that supports the value not just through the signed contract, but throughout the closing process, to give the sale the best chance for smooth sailing.

In real estate, good information reduces friction. Bad information creates questions. And questions, when they show up late in a transaction, tend to bring their annoying little friends: delays, renegotiations, and stress. Nobody needs more of that.