Want a Smoother Appraisal? Here’s How Agents Can Help With the New UAD 3.6 Appraisal Report

Data is Key With the New 3.6 Appraisal Report

If you’re a real estate agent, you know how important it is to keep a transaction moving along. The last thing you want is an unnecessary delay, especially when you’re getting close to closing.

One thing that can help is making sure the appraiser has good information about the property before the appraisal takes place.

With the new UAD 3.6 appraisal report, appraisers will be reporting more detailed information about the homes they appraise. This includes information about updates, renovations, additions, and other improvements.

For example, it’s not good enough to just say that a home has been updated. We need to know what was updated, when the work was done, and how extensive the work was.

This is where you, as the agent, can help.

By gathering this information from your seller ahead of time, you can help eliminate some of the back-and-forth that takes place when the appraiser has to track down missing information.

In my previous article, “A Real Estate Agent’s Guide to Understanding the New UAD 3.6 Appraisal Report“, I discussed some of the changes agents can expect with the new appraisal report.

In this blog post, I want to share some things you can do to help the appraisal process go more smoothly. I’ve also included two FREE information sheets that you can use.

Why Is This Information So Important?

Let me give you an example.

Let’s say you’re selling a home that was built in 1995. The seller tells you that the kitchen was remodeled, so you include that information in your MLS listing.

When I visit the property, I can see that the kitchen has been updated. What I may not know is exactly what was done.

Did the seller just replace the countertops and appliances, or did they completely remodel the kitchen? Were the cabinets replaced? What about the flooring? When was all of this work completed?

These are things I can’t always determine just by looking at the property.

If I don’t have this information, I may need to contact you. You then have to contact your seller, wait for them to get back to you, and pass the information along to me.

As you can see, something as simple as getting information about a kitchen remodel can take additional time.

Now, what if you had already asked your seller these questions and had the answers available when I visited the property?

That would eliminate some of the follow-up questions and help me move forward with the appraisal.

Of course, there are other things that can affect how long an appraisal takes, but having good information available from the beginning can certainly help.

What Information Should You Get From Your Seller?

I’m not suggesting that agents need to learn how to complete the new appraisal report. That’s our job.

What I am suggesting is that if you ask the seller about the property before the appraisal takes place, it could make the process smoother on the back end during the appraisal.

There are several areas where this information can be particularly helpful.

1. Kitchen and Bathroom Updates

This is one area where I usually need additional information.

What if your seller tells you that the bathrooms have been remodeled?

What exactly does that mean?

Did they replace the countertops, sinks, and faucets, or did they completely remodel the bathrooms, including the cabinets, flooring, tubs, and showers?

There’s a big difference between the two.

The approximate date of the work is also important. A bathroom that was remodeled two years ago is different from one that was remodeled fifteen years ago.

When you’re talking with your seller, try to find out what was done, which rooms were updated, and approximately when the work was completed.

Don’t worry if they can’t remember the exact dates. An approximate year is helpful, as long as they let us know it’s an estimate.

2. Major Components of the Home

Another area where the seller can help is by providing information about the major systems or components of the home.

I’m talking about things like the roof, heating and cooling systems, windows, water heater, plumbing, and electrical improvements.

For example, I may observe that the heating and cooling system appears relatively new. What I may not know is whether it was installed two years ago or eight years ago.

The same is true for the roof and other major components.

If your seller has owned the home for several years, they probably know when most of these items were replaced.

Having this information available when I visit the property can save us both some time.

3. Additions, Finished Basements, and Converted Spaces

This is another area where a little information can make a big difference.

Let’s say the homeowner enclosed the garage and converted it into a family room.

When was the work completed? Was the garage completely converted, or is part of it still used for parking or storage? Was heating and cooling added?

Or maybe the homeowner finished a portion of the basement several years after purchasing the home.

Knowing when the work was completed, approximately how much space was finished, and what improvements were made gives me a better understanding of the property.

Keep in mind that just because an area has been finished doesn’t automatically mean it can be included in the home’s reported living area. We still have to look at the property and determine how the area should be reported.

The same applies to detached buildings, accessory dwelling units (ADU), pools, and other major improvements.

4. Major Repairs and Other Important Information

It’s also helpful to know if the property has had significant repairs, previous damage, or improvements that haven’t been completed.

For example, maybe the homeowner had a water leak several years ago that required major repairs.

Or maybe they started finishing the basement but haven’t completed the work.

This doesn’t mean that every minor repair needs to be listed. We’re mainly interested in the items that might require additional questions or more research.

It’s not necessary for the homeowner to report on the condition of the property. We just want to know about its history.

A Simple Form You Can Give Your Seller

I realize that agents already have plenty to do when preparing a home for sale. I don’t want to give you another complicated task.

That’s why I’ve created a one-page **Property Updates & Improvements Information Sheet** that you can give your seller.

It covers the main items I’ve just discussed, including kitchen and bathroom updates, major components, additions, and other improvements.

Your seller only needs to complete the sections that apply to their property.

They don’t have to spend hours looking for receipts, permits, or other paperwork. If they already have some of this information available, that’s great. If not, they can simply provide what they know.

I recommend giving this form to your seller when you’re preparing the listing rather than waiting until the appraisal has been scheduled.

There are two reasons for this.

First, you’ll have the information available for the appraiser when the time comes.

Second, you may find information that would be helpful to include in your MLS listing.

The form can also be used by homeowners who are refinancing their homes. I typically provide it to the homeowner when I call to set up the appointment, and they email it back to me or give it to me during the appraisal inspection.

**Download the Property Updates & Improvements Information Sheet Here**

Want a personalized copy?
If you’re a real estate agent and would like to use this form with your sellers, send me your logo and I’ll be happy to create a personalized copy for you at no charge.

Today’s Listing May Be Tomorrow’s Comparable Sale

Here’s something else I want you to think about.

The information you gather from your seller isn’t just helpful for the appraisal of the home you’re currently selling. It can also help appraisers in the future.

Let’s say you list a home today, and it sells. Three months from now, someone else may be appraising another home in that neighborhood and considering your listing as a comparable sale.

When I’m researching comparable sales, one of the first places I look is the MLS.

I’ll review the photographs, property description, and other available information to get an idea of how the property compares to the home I’m appraising.

But here’s where I sometimes run into a problem.

The MLS description says something like “Beautifully updated home with numerous improvements.”

That sounds great, but what does it actually tell me?

Was the kitchen updated? Were the bathrooms remodeled? Did the seller replace the roof or heating and cooling system? When was the work completed?

In a situation like this, I would probably end up contacting you to get more information.

Now imagine that your MLS listing included the approximate dates of the major improvements and a description of what was done.

That would give me a much better starting point when researching your sale.

I’m not suggesting that you need to include every little detail in your public remarks. The important thing is to provide useful information in the appropriate MLS fields or other available documentation.

Remember, your current listing will most likely be a comparable sale in the near future.

The Five-Question Rule

One way to make your property descriptions more helpful is to use what I call the Five-Question Rule.

When describing a major improvement, try to answer these five questions:

1.  **WHAT** was done?
2.  **WHERE** was the work completed?
3.  **WHEN** was it completed?
4.  **HOW MUCH** work was done?
5.  **SOURCE** Where did the information come from?

Here’s an example.

Let’s say your seller tells you that the kitchen and bathrooms have been updated.

Instead of just putting “updated kitchen and baths” in the MLS, ask a few more questions.

You may find out that the kitchen was completely remodeled in 2022, including new cabinets, countertops, flooring, and appliances.

The main bathroom may have been completely remodeled in 2021, while the hall bathroom received only new countertops and fixtures in 2023.

As you can see, that tells a lot more than simply saying the home has been updated.

It’s also important to know where the information came from. Did the current homeowner complete the work, or are they relying on information provided by the previous owner?

You don’t necessarily have to include all five answers in your public remarks. It may better to include the information in the agent remarks or upload a data sheet to the listing so that it can be printed out.

The main thing is to collect accurate information and make it available to those who need it.

I’ve created a separate tip sheet with examples of how to use the Five-Question Rule when gathering property information.

**Download the UAD 3.6 Agent Tip Sheet Here**

What Should You Give the Appraiser?

If you’ve already collected the completed homeowner information sheet, you can provide it to the appraiser when the appraisal is scheduled.

You can also provide information about significant improvements, the comps you used when pricing the property, and other property details that may be helpful.

Some agents may be worried that it might look like they are trying to influence the appraiser; however, as long as a predetermined value is not discussed or expected, it should be okay.

It’s still the appraiser’s responsibility to observe the property, verify important information, analyze the market, and develop an independent opinion of value.

And remember, even when you’ve provided a completed information sheet, there may still be some questions that need to be answered.

The goal isn’t to eliminate every question. It’s to avoid spending unnecessary time tracking down information that could have been provided upfront.

Conclusion

The bottom line is that a little preparation before the appraisal can save everyone time.

By asking your seller a few questions about updates, renovations, and other improvements, you can help eliminate some of the back-and-forth that sometimes slows down the appraisal process.

You’ll also have better information for your MLS listing, which may be helpful when the property becomes a comparable sale in the future.

I’ve included two free information sheets that you can use to help gather this information. Feel free to share them with your sellers and other agents.

If you have any questions about the new appraisal report or the type of information appraisers need, feel free to contact me.

And as always, thanks for reading.

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