Appraisal Waivers, UAD 3.6, and What Buyers and Sellers Should Know
The residential real estate valuation profession is changing.
During August 2026, appraisal volume was unusually slow for my appraisal company, APPRAIS. Based on public discussions among appraisers, I was not the only residential appraiser experiencing a slowdown.
In an August discussion on Reddit’s appraisal forum, appraisers from several parts of the country described reduced volume, while others reported steady or active workloads. The discussion does not prove that a nationwide slowdown occurred, but it demonstrates how differently appraisal volume can affect individual appraisers and geographic markets.
Mortgage activity, seasonal patterns, lender underwriting decisions, appraisal waivers, changes in how assignments are distributed, and the transition to UAD 3.6 could all influence the amount of work reaching individual appraisers. I cannot identify one factor as the cause of what I experienced during August.
However, as the November 2, 2026 UAD 3.6 mandate approaches, there are indications that the transition is occurring unevenly across the mortgage industry. Lenders, appraisal management companies, software providers, reviewers, and appraisers are all adapting their systems and workflows while actual UAD 3.6 assignment volume remains limited in some parts of the industry.
That raises an important question:
What role will the residential appraiser have in the future of real estate?
I do not have a crystal ball. However, I have worked as a residential real estate appraiser since 1998 and have completed approximately 19,000 residential appraisal assignments. Based on that experience, I believe this is a conversation worth having.
Appraiser’s Perspective
Thomas J. Dunphy III, State-Certified Residential Real Estate Appraiser RD8755
What consumers commonly call an “appraisal waiver” is now referred to by Fannie Mae as “value acceptance.”
Value acceptance means that Fannie Mae may accept the property value submitted by the lender through Desktop Underwriter without requiring a traditional appraisal for an eligible transaction. The lender-submitted value is generally based on the contract price for a purchase or an estimate of value for a refinance.
Freddie Mac has a related process known as Automated Collateral Evaluation, or ACE.
An appraisal waiver does not necessarily mean that no data or valuation technology was used. It means that the applicable underwriting system determined that a traditional appraisal completed by a state-credentialed appraiser was not required for that lending decision.
The waiver satisfies the lender’s appraisal requirement. It does not necessarily answer every question a buyer may have about the property’s condition, market position, characteristics, or purchase price.
Whether appraisal waivers contributed to the slowdown I experienced during August is difficult to determine. Waivers may be one factor, but I do not have sufficient evidence to identify them as the cause.
Time will tell whether value acceptance and other appraisal alternatives continue expanding and how they affect the number and types of assignments completed by residential appraisers.
Appraisers Are Currently Training for UAD 3.6
At the same time that appraisal waivers are receiving increased attention, appraisers, lenders, appraisal management companies, and software providers are actively learning and transitioning to UAD 3.6.
UAD stands for Uniform Appraisal Dataset. UAD 3.6 represents a substantial redesign of residential appraisal reporting. It replaces the familiar collection of individual appraisal forms with a more flexible, structured, and data-intensive reporting system.
The broad-production period began on January 26, 2026. During the current transition, qualifying appraisal reports can be submitted using either the previous dataset or UAD 3.6.
Beginning November 2, 2026, UAD 3.6 will become mandatory for all new appraisal reports submitted through the Uniform Collateral Data Portal for Fannie Mae and Freddie Mac. Previously submitted reports using the earlier dataset may continue to be revised during the applicable transition period.
This deadline means that appraisers are currently investing substantial time in education, software, workflow changes, and hands-on training. We are not simply reading about a future reporting system. Appraisers are completing UAD 3.6 assignments now so that we can understand the requirements and be prepared when the mandate takes effect.
The UAD 3.6 Transition Remains Uneven
As the November 2 mandate approaches, the transition does not appear to be occurring at the same pace throughout the mortgage industry.
Recent industry reporting and discussions indicate that some lenders, appraisal management companies, software providers, and appraisers are still working through implementation issues while actual UAD 3.6 assignment volume remains limited in some markets and organizations.
That is important when considering the appraisal slowdown discussed earlier in this article.
I cannot conclude that UAD 3.6 caused the reduction in appraisal volume I experienced during August. Mortgage activity, appraisal waivers, lender decisions, assignment distribution, fee competition, and other factors may also be contributing.
However, the uneven transition raises another possibility: some appraisal volume may be affected by lenders and appraisal management companies adjusting their ordering systems, appraisal workflows, review processes, software, and appraiser panels ahead of the November mandate.
The next several months should provide a much clearer picture as more lenders move their appraisal production into UAD 3.6.
This creates an interesting contrast.
At the same time that the mortgage industry is using appraisal waivers for eligible transactions, it is requiring appraisers to learn a considerably more detailed reporting system for assignments that still require an appraisal.
That contrast raises an understandable question: Is the appraisal process becoming more detailed and exacting, or is the mortgage industry gradually moving away from traditional appraisals?
The answer may be both, depending on the transaction.
Appraisal alternatives may continue to be used for eligible loans, while assignments requiring an appraisal are transitioning to a considerably more detailed reporting system.
The future may be more complicated than either “appraisers are going away” or “nothing is changing.”
What Is Different About a UAD 3.6 Appraisal?
Having completed UAD 3.6 assignments, I can say that these reports require considerably more property information than many consumers may realize.
An appraiser is not simply walking through the house, selecting comparable sales, and arriving at a value conclusion. UAD 3.6 requires detailed observation and structured reporting concerning the dwelling, site, materials, condition, improvements, utilities, and individual property characteristics.
The redesigned report is dynamic. The sections and information displayed can change depending on the characteristics of the property.
If the property has a garage, accessory dwelling unit, or another applicable feature, the report includes additional sections specifically addressing that component.
It is different.
What “More Detailed” Actually Means
The additional reporting is not simply a matter of appraisers “nitpicking” each room. UAD 3.6 requires appraisers to identify and document property characteristics much more specifically than under the previous reporting system.
Depending on the property, the appraiser may need to collect and report information such as:
- Ceiling heights
- Interior and exterior wall materials
- Flooring materials
- Kitchen and bathroom finishes
- Windows and exterior doors
- Impact-resistant glass and available supporting labels or markings
- The vertical distance from the primary entrance to ground level
- Entrance configuration and accessibility
- Mechanical systems
- Property condition
- Renovations and improvements
- Areas requiring repair
- Garage design, capacity, access, and utility
- Accessory dwelling units
- Additional living areas and structures
- Site improvements
- Conditions affecting use or marketability
The level of specificity can extend to something as seemingly simple as a private well. Under the previous reporting system, an appraiser might report that a property had a private well. Under UAD 3.6, the appraiser may need to identify the type of well, such as dug or drilled.
That example illustrates the central difference. The new report does not merely ask whether a feature exists. It asks what type it is.
Garages, ADUs, and Dynamic Reporting
Garages now have a separate reporting section.
The appraiser must identify and report applicable garage characteristics, including the number of vehicles the garage is designed to accommodate and information concerning its design, access, capacity, and utility.
Accessory dwelling units also have a separate section.
When an ADU is present, the appraiser must report the characteristics of that unit and distinguish it from the primary dwelling and other structures on the property.
This is why UAD 3.6 is described as dynamic. Different property characteristics can trigger additional reporting requirements.
The appraiser must understand what is present, classify it correctly, and complete the applicable portions of the report.
Photographs of Defects and Property Features
UAD 3.6 also requires additional photographic documentation.
When an appraiser observes a reportable defect, the appraiser must photograph it. It is not sufficient simply to mention the defect without providing the required visual documentation.
Impact-resistant windows and doors require additional attention as well. The appraiser may need to obtain photographs of available labels, markings, or other visible information supporting the reported characteristic.
The appraiser must leave the property with the photographs and information necessary to complete the report. If a required item was not observed, measured, identified, or photographed during the property visit, completing the report can become considerably more difficult.
The appraiser therefore needs to understand the reporting requirements before arriving at the property.
Separate Exterior, Interior, and Overall Ratings
UAD 3.6 also requires more specific analysis of a property’s quality and condition.
The appraiser must address the exterior and interior separately and then develop overall quality and condition ratings for the property.
The redesigned report also attempts to reduce reliance on standardized boilerplate language. Each property is different, and the report is intended to reflect the materials, characteristics, condition, improvements, defects, and features of the property actually being appraised.
This does not eliminate professional judgment. It requires the appraiser to support that judgment with more detailed observations and structured property data.
Homeowners Should Document Their Improvements
Because UAD 3.6 requires more detailed reporting of property materials, condition, renovations, utilities, and improvements, homeowners should retain receipts, permits, contracts, warranties, and a written record of completed work.
A homeowner may know that impact-resistant windows were installed, but documentation can help support that characteristic.
A homeowner may know when a kitchen or bathroom was renovated, but contracts, permits, receipts, and a list of completed improvements can help establish what work was performed and when.
The more specific the reporting requirements become, the more important reliable property documentation becomes.
More Data Requires More Work
The purpose of UAD 3.6 is to create a more structured and consistent collection of property and market information. That may ultimately provide lenders and other participants with a more complete dataset.
Obtaining that information, however, requires time.
The appraiser must know what to look for before arriving at the property. During the property observation, the appraiser must collect the required measurements, photographs, materials, characteristics, classifications, and other details.
After leaving the property, that information must be organized and entered correctly into the appraisal software.
More data fields do not automatically produce a credible value conclusion. The data must be reliable, and the appraiser must still understand the property and its market.
My Experience With the Additional Time
The amount of time required to complete a UAD 3.6 assignment will vary based on the property, assignment complexity, appraiser, software, and level of familiarity with the redesigned report.
I can only report my own experience.
When completing a semi-complex or complex assignment using the previous UAD 2.6 reporting system, my property observation would generally take approximately one to two hours.
So far, my UAD 3.6 property observations have taken approximately four to five hours.
Part of that additional time involves learning a new reporting system and becoming familiar with its requirements.
Another part involves the appraisal software. The software is still developing and has not yet caught up with every aspect of the appraiser’s workflow.
The process should become more efficient as appraisers gain experience and software providers continue improving their products.
However, the difference is not entirely a temporary software issue.
UAD 3.6 requires the appraiser to collect more measurements, identify more materials and components, complete additional property-specific sections, develop separate ratings, and provide more photographic documentation.
Experience may improve efficiency, but it will not eliminate the additional information that must be collected and reported.
Details an Automated System May Not See
Automated valuation models can process enormous quantities of information. They can identify sales patterns, analyze public records, and compare many property characteristics within seconds.
However, an automated system remains dependent upon the information available to it.
Public records may not accurately reflect the present condition of a home. They may not identify the quality of a renovation, deferred maintenance, functional limitations, an unpermitted addition, water access, view influence, or the way purchasers react to a particular location.
A database may identify that a property has a swimming pool. It may not know whether that pool was recently renovated or requires substantial work.
It may identify the age of the roof without knowing its present condition.
It may recognize the living area reported in public records without knowing whether an addition was properly constructed or whether the floor plan functions effectively.
It may identify a garage without fully understanding its size, design, access, condition, capacity, or utility.
It may not recognize that a separate structure functions as an accessory dwelling unit or understand how that unit contributes to the property.
It may identify waterfront frontage without fully understanding navigability, bridge restrictions, water depth, dock utility, orientation, or view.
These distinctions can matter, particularly for waterfront, upper-tier, renovated, rural, or otherwise unique properties.
Technology can assist the valuation process, but its conclusions remain dependent upon the completeness and reliability of the underlying data.
Tom the Realtor’s Perspective
The growth of appraisal waivers creates an important question for buyers:
If your lender does not require an appraisal, who is taking a close look at the property and comparable sales before you decide what to offer?
A waiver satisfies the lender’s appraisal requirement. It does not necessarily tell the buyer whether the proposed purchase price is supported by the available market evidence.
This is where my appraisal experience provides an additional layer of service to my real estate clients.
When I represent a buyer, I can prepare an appraisal-informed comparative market analysis that includes a comparable-sales grid and a supported price range.
I can analyze comparable sales while considering living area, site characteristics, condition, renovations, garages, accessory structures, ADUs, pools, location, waterfront influence, view, functional utility, construction materials, and other characteristics that may influence purchaser behavior.
The purpose is to give the buyer meaningful market information when deciding what to offer and whether the asking price is supported by the available evidence.
If Your Appraisal Was Waived, I May Be the Realtor for You
If you are purchasing a home with an appraisal waiver, Tom Dunphy Realtor (Fulton Grace Realty) may be the Realtor for you.
When you work with Tom Dunphy Realtor (Fulton Grace Realty), you have Thomas J. Dunphy III, State-Certified Residential Real Estate Appraiser RD8755, bringing appraisal-trained eyes to the property, the comparable sales, and the factors that may influence the transaction.
You are not relying solely on an automated valuation model or a basic comparative market analysis.
Before an offer is submitted, I can develop a comparable-sales grid and provide a supported price range based on the available market evidence. This gives the buyer an additional level of information when evaluating the property and developing an offer strategy.
It does not guarantee what the property will sell for or what another appraiser may conclude. It does provide the buyer with analysis prepared by a Realtor who has spent decades inspecting, analyzing, and valuing residential real estate.
How Sellers Can Benefit
The same experience can benefit homeowners preparing to sell.
Before positioning a property for the market, I can examine the competitive sales, property characteristics, condition, improvements, site, amenities, and features that purchasers may recognize when comparing the home with other available properties.
An automated estimate can be a useful starting point. It cannot walk through the property, observe its condition, evaluate its improvements, or understand every feature influencing purchaser behavior.
A basic comparative market analysis may identify nearby sales. An appraisal-informed analysis goes further by examining the differences between those sales and the property being offered.
That distinction can help a seller understand the property’s market position and make informed decisions concerning pricing and marketing.
Two Professional Perspectives
My appraisal services through APPRAIS and my real estate sales services through Fulton Grace Realty are separate.
The appraisal-informed analysis I provide while representing a buyer or seller is part of my real estate sales service through Fulton Grace Realty. It is not a certified appraisal, an appraisal report, or a guarantee of a property’s value.
Certified appraisal services are provided separately through APPRAIS.
Real estate sales services are provided by Tom Dunphy Realtor through Fulton Grace Realty.
That distinction is important, but so is the experience behind both services.
Where Is the Profession Headed?
Residential appraisal is not standing still.
Appraisal waivers may continue expanding for eligible transactions. UAD 3.6 is requiring appraisers to collect and report substantially more property information. Automated valuation technology will continue developing, and the types of assignments sent to residential appraisers may continue changing.
The uneven UAD 3.6 transition adds another uncertainty.
If lenders and appraisal management companies are still adapting their systems and workflows as the November mandate approaches, the next several months could look very different from August. Appraisal ordering patterns, turn times, assignment distribution, and the types of appraisal products being requested may continue changing as the industry moves toward full implementation.
I do not know exactly where that process will lead.
It is possible that appraisal waivers will continue reducing the number of traditional assignments. It is also possible that appraisers will increasingly be assigned properties requiring closer observation, additional data collection, and more complex analysis.
The UAD 3.6 reporting process demonstrates that detailed property information still matters.
What I know from experience is that real property is not always as uniform as a database makes it appear. Condition, construction, renovations, ceiling height, entrance configuration, site characteristics, functional utility, accessory units, garage utility, waterfront access, and localized purchaser behavior can all affect how a property competes.
Technology may change how valuation information is collected and delivered. It does not eliminate the importance of accurate property data, informed analysis, and experienced human judgment.
Time will tell where the residential appraisal profession is headed.
In the meantime, buyers and sellers should understand what an appraisal waiver does, what it does not do, and who is examining the property and market information before they make one of the most important financial decisions of their lives.
Contact Tom Dunphy
If you are considering buying, selling, or relocating to Florida, I would be happy to discuss how my appraisal experience can provide an additional layer of analysis during your real estate transaction.
Tom Dunphy Realtor
Licensed Florida Real Estate Sales Associate
Fulton Grace Realty
Thomas J. Dunphy III
State-Certified Residential Real Estate Appraiser RD8755
APPRAIS
Phone: 772-265-4007
Website: TomDunphySellsRealEstate.com
Disclaimer
This article is provided for general educational and informational purposes. It is not a certified appraisal, appraisal report, legal opinion, lending decision, or guarantee of a property’s value.
Appraisal-informed analysis provided during a real estate transaction is part of Tom Dunphy Realtor’s real estate sales service through Fulton Grace Realty and does not constitute a certified appraisal.
Certified appraisal services, when separately engaged, are provided through APPRAIS. Buyers and sellers should consult the appropriate qualified professionals concerning their specific real estate, appraisal, lending, legal, inspection, insurance, and tax needs.
Sources
Fannie Mae: Uniform Appraisal Dataset 3.6 Frequently Asked Questions
Fannie Mae: Uniform Appraisal Dataset
Fannie Mae: Property Valuation Frequently Asked Questions
Fannie Mae: Value Acceptance, Value Acceptance + Property Data, and Hybrid Appraisal Test Cases
Freddie Mac: Uniform Appraisal Dataset
Reddit r/appraisal: “Volume,” August 2026