What Realtors Should Know About the New Appraisal Format UAD 3.6

If you list or sell homes in the Reno-Sparks area, you have probably heard that appraisal reports are changing. The new format is called UAD 3.6, and it changes how appraisers collect, describe and report property information. I'm Diana Sawyer, a Licensed Residential Appraiser with Sage Crest Appraisals, and I want to walk through what this means for you in practical terms, so your listings and your appraisal appointments go as smoothly as possible.

The Old C and Q Ratings Are Being Replaced

Under the old UAD 2.6 format, appraisers summarized a home's condition and quality with ratings such as C3 or Q4. Those shorthand ratings are being replaced with a more detailed and structured analysis. I now look more closely at the quality of construction, materials, workmanship, design, updating, remodeling, maintenance and overall condition, and the report explains what is actually contributing to my conclusions.

That means two homes that might both have been called "C3" in the past are not automatically treated as identical anymore. I need to look at the individual characteristics of each home and explain the differences. UAD 3.6 is not simply a new number in a box. It is a fuller description of why a home has a particular level of quality and condition, and how that compares with the comparable sales.

Be Specific in the MLS About Remodels and Updates

Because the report now captures so much more detail, accurate MLS information matters more than ever. The word "updated" doesn't tell me very much. Compare these two descriptions:

• "Updated kitchen."

• "Kitchen remodeled in 2024 with new cabinets, quartz countertops, appliances and flooring."

The second one tells me what was done and when, and it gives me something I can verify and document. The same goes for bathrooms, roofs, windows, HVAC, flooring and additions. If the seller has receipts, permits or a simple list of improvements with dates, that is very helpful to have available at the appointment.

Condition works the same way. Original finishes, worn flooring, dated bathrooms or deferred maintenance are all part of the condition analysis. An honest, specific description helps everyone, because the report will describe those characteristics either way.

Report Square Footage the Way It Is Built

One of the most useful changes you can make is how square footage is listed. The goal is not to report the largest possible number. The goal is to describe accurately how the space is configured.

Less helpful:

• 2,850 SF including finished basement

More helpful:

• 2,100 SF above grade

• 750 SF finished basement

Separating above-grade living area from finished below-grade area lets me compare the home with competing properties using consistent, meaningful data. It also reduces questions and discrepancies between the MLS, public records and my measurements. The same applies to additions, garages, enclosed patios and other finished areas. If you know how a space was built or permitted, say so clearly.

How Comparable Sales Are Selected

Under UAD 3.6, comparable selection goes beyond square footage, bedrooms and bathrooms. I pay closer attention to whether a comparable has a similar level of construction quality, updating, remodeling, maintenance and overall appeal. Detailed MLS descriptions on your listings, and on the sales around them, give appraisers better information to work with when making those comparisons.

Expect the Inspection to Take Longer

Please plan for the appraisal inspection to take somewhat longer than it used to. UAD 3.6 requires much more structured information, so I am verifying and documenting more during each visit. That can 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

You may see me take more measurements, ask more questions or spend more time photographing and documenting the home. That does not mean there is a problem with the property. It is simply the additional data that must now be captured and reported. Letting your sellers know this ahead of time saves a lot of worry.

A Quick Checklist for Your Listings

• Describe remodels with what was done and the year.

• List above-grade and below-grade finished area separately.

• Note additions, garages and enclosed areas accurately.

• Have a list of improvements, receipts or permits ready for the appraiser.

• Give sellers a heads-up that the inspection may take longer.

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

Questions About UAD 3.6?

I'm always glad to talk with agents about how the new format works in practice. To schedule an appraisal, book online at https://www.sagecrestappraisals.com or call me at 775.233.6979.