10/16/2026
This is something that needs to be talked about more.
The industry is transitioning to UAD 3.6, a major change to how residential appraisals are reported. The old reporting format may still be accepted during the transition, but it will eventually be phased out completely, with the new requirements taking center stage in November.
As someone who works as both a Certified Real Estate Appraiser and a Realtor, this is something I'm paying close attention to.
Here's why.
These new reports require significantly more data, detail, and time to complete. And there's another piece of the puzzle that isn't getting enough attention: the appraisal software companies are behind the eight ball too.
The software appraisers rely on to complete their reports is still catching up. Developers are working to get the new programs ready, tested, and functioning properly while appraisers are preparing to make the switch.
Think about that. We're facing a major change in the appraisal process, and the tools needed to complete the work aren't fully where they need to be yet.
I'm already hearing reports of appraisal assignments taking twice as long, or even longer, to complete under the new format.
If an appraisal takes twice as long, but the fee stays the same, something has to give. Appraisers have to be selective about the work they accept, and that can directly affect turn times.
Let's clear something up. There isn't a shortage of appraisers. There's a shortage of appraisers willing to accept low fees, unrealistic deadlines, and significantly more work for the same money.
This isn't just an appraiser problem. It's a real estate industry problem.
In 2020, we were dealing with an overwhelming volume of transactions. This time, we're looking at the possibility of a capacity problem caused by more demanding reporting requirements, software challenges, and compensation that may not reflect the additional work involved.
I'm not sharing this to scare anyone or predict that every transaction is going to be delayed. I'm sharing it because I work on both sides of the business and I think we need to be talking about this to help protect the consumer.
Appraisals are a critical part of getting a transaction to the closing table. The last thing anyone wants is an avoidable delay because the industry wasn't prepared for a change we knew was coming.
Plan ahead, communicate early, and stop assuming the appraisal process will operate the same way it always has.
I'd much rather see our industry prepare now than have buyers, sellers, Realtors, and lenders scrambling later.