What Borrowers Should Know About the New Appraisal Format UAD 3.6

Diana Sawyer

Oct 9

3 min read

If you are buying a home or refinancing, an appraisal is usually part of the loan process. Appraisal reports are moving to a new format called UAD 3.6, and you may notice some differences in how your appointment goes and what the report contains. I'm Diana Sawyer, a Licensed Residential Appraiser with Sage Crest Appraisals in Reno, and I'd like to explain what to expect in plain terms.

What UAD 3.6 Is

UAD stands for Uniform Appraisal Dataset. It is the standardized format appraisers use to report property information on many mortgage appraisals. Version 3.6 replaces the older 2.6 format and asks appraisers to capture more property detail, in a more structured way.

Under the old format, a home's condition and quality were summarized with short ratings like C3 or Q4. Those ratings are being replaced with a more detailed analysis. Instead of a single shorthand rating, the report now describes the specific characteristics behind the home's condition and quality, such as construction, materials, workmanship, design, updating, remodeling and maintenance.

What the Appraiser Documents

Because the report is more detailed, I verify and record more information during the inspection. Depending on the home, that may include:

Ceiling heights
Finished versus unfinished areas
Above-grade versus below-grade finished area
Basement characteristics and finish
Garage size and configuration
Porch and patio characteristics
Exterior features and amenities
Foundation characteristics
Additional finished areas
Condition and quality characteristics
How the floor plan functions

Square footage is also reported in more detail. For example, a home might be described as 2,100 square feet above grade plus 750 square feet of finished basement, rather than a single combined figure. Keeping those areas separate lets the home be compared with similar properties on a consistent basis.

Why the Inspection Takes Longer

You should expect the appraisal visit to take somewhat longer than it might have in the past. I may take more measurements, ask more questions and take more photos. Please don't be alarmed by that. Extra documentation does not mean there is a problem with the property. It is simply the additional information the new format requires.

How to Prepare and What to Provide

Whether you are the buyer or the owner, a little preparation helps the appointment go smoothly. If you are refinancing, you'll likely be at the home with me. If you are buying, the seller or listing agent usually handles access, but it is still worth knowing what helps.

A list of updates. Write down major improvements and the year they were done. "Kitchen remodeled in 2024 with new cabinets, quartz countertops, appliances and flooring" is much more useful to me than "updated kitchen."
Permits and receipts. If work was permitted, or you have receipts or contractor invoices, have them handy. They help me document what was done and when.
Access to every area. Please make sure I can get into the garage, basement, attic access, sheds, finished bonus rooms and the yard.
Notes on anything unusual. Additions, converted spaces, solar systems, or anything not obvious from a walk-through are good to mention.
Pets and safety. Securing pets and clearing walkways makes measuring easier.

You don't need to stage the home or make repairs for my visit. Accurate information is what helps most.

What the Report Now Explains

One of the benefits of UAD 3.6 is that the report is more transparent. Rather than a shorthand rating, it describes what I observed about the home's quality and condition, how the space is configured, and how the home compares with the comparable sales I selected. When I choose comparables, I look beyond size, bedrooms and bathrooms at whether they have a similar level of construction quality, updating, maintenance and overall appeal.

If you receive a copy of the appraisal through your lender, you'll likely find it more descriptive than reports you may have seen before. Your lender is the right person to talk to about how the report is used in your loan.

For more on the new format, see my companion posts for realtors and homeowners: What Realtors Should Know About UAD 3.6 and What Homeowners Should Know About UAD 3.6.

Have Questions?

I'm happy to explain what to expect before your appointment. To learn more or schedule an appraisal, visit https://www.sagecrestappraisals.com or call me at 775.233.6979.