UAD TIPS for working appraisers !

[DWiley]

No matter what steps we take to make reporting easier, we will be providing a ton more information, so the product should be valued more - hopefully that will work up the fee as a next development.

There are certainly some new data fields. However, most of those new data fields were created after lengthy analysis of the types of information that have been included in text addenda in 2.6 reports. So, while there is some brand new information (entry height, ceiling heights, condition ratings for interior and exterior, etc.), in most cases that new information is not really new - its just being moved from the text addendum into a dedicated field for the item. For example, in UAD 2.6, if you had a property with an ADU, information about the size, room count, etc. for the ADU would be covered in the text addendum. In UAD 3.6 there are dedicated fields for that information.

There are several webinars/interviews with appraisers who have completed multiple UAD 3.6 reports. Listen to those and see what those appraisers are saying about the amount of data.

 

[DWiley]

Condition Rating Tips

In UAD 2.6, there is one condition rating (C1, C2, etc.). In UAD 3,6 there is an interior rating, an exterior rating, and an overall rating.

Also, in UAD 2.6, if the appraisal is done subject to repair, the condition rating reported is the condition the home would be in after that repair. For example, the property might be in C4 condition after a required roof repair.

In UAD 3.6, one reports the condition both as-is and after repair. So, for example, the home that needed the rood repair might be C4 after the repair, but C5 in its as-is condition.

 

[Tawfik Ahdab]

In my market, I’m sure an entry height of 8’3”will create $7,300 in extra property value over an entry height of 8’2” according to the Principle of Contribution.

 

[J Grant]

In my market, I’m sure an entry height of 8’3”will create $7,300 in extra property value over an entry height of 8’2” according to the Principle of Contribution.

I appreciate the humor, but I would like to keep this thread for Tips only. We need a constructive place to find out and share information -appraisers are up against a cricial deadline.

We have the rest of the board to be sarcastic and complain - I indulge in both of course.

It looks like, from what I have seen, that the entry height field is a range, 1-2 feet etc, not expecting us to measure/report to the inch

 

[J Grant]

One little tip I can share- in UAD 2.6, photos are called photos.

Per the sample UAD 3.6 in the training video, in UAD 3.6 the word photo is replaced with "exhibit".

 

[TerryRohrer]

Condition Rating Tips

In UAD 2.6, there is one condition rating (C1, C2, etc.). In UAD 3,6 there is an interior rating, an exterior rating, and an overall rating.

Also, in UAD 2.6, if the appraisal is done subject to repair, the condition rating reported is the condition the home would be in after that repair. For example, the property might be in C4 condition after a required roof repair.

In UAD 3.6, one reports the condition both as-is and after repair. So, for example, the home that needed the rood repair might be C4 after the repair, but C5 in its as-is condition.

Does that then intend that two values are to be developed? Or both condition ratings reported but only value as if repaired?

 

[J Grant]

toward the end of the report, near the certs on UAD 3.6, it has the ability to expand, where we can add more than one value.

The AS IS Value....(then we can add another line for ..

The AS REPAIRED value

Then we can add as many as lines for as many additional values as we want, such as

DOM within 30 days Value


I need to watch the ALAMODE video again to see where the instructor demonstrated how to add fields or lines.. Either it in the right-hand column , click on a plus sign for what we want to add, or a little gear handle symbol appears on the right to click to add lines, such as for a second value.
s

 

[DWiley]

Does that then intend that two values are to be developed? Or both condition ratings reported but only value as if repaired?

For GSE work, it is the latter. Only the as repaired value must be developed.

Having said that, there is the ability to report both values when needed for other types of assignments (REO work, for example).

 

[ZZGAMAZZ]

AI is not required to complete a 3.6 appraisal report. The appraisers who learn to leverage AI tools will be at a competitive advantage to those who don't. The danger... and it's inevitable that some appraisers will fall into the trap... is trying to use AI to determine the opinion of value. It should be used cautiously and treated like other tools.

CHATGPT recommended either of the two following disclosure statements when involving AI in the appraisal process, the first for residential appraisal reports and the second for formal legal, litigation, estate, etc reportS:

The appraiser utilized artificial intelligence and other electronic research tools as supplemental aids in the preparation of this report. Any such tools were used solely for research, organization, and drafting assistance. All analyses, opinions, conclusions, and the final opinion of value were independently developed, reviewed, and certified by the undersigned appraiser, who accepts full responsibility for the contents of this report.

---OR---

The appraiser utilized artificial intelligence-based software and other electronic research tools as supplemental aids in the gathering, organization, summarization, and drafting of certain narrative portions of this report. Such tools were used solely to enhance research efficiency and report preparation. All factual information, analyses, opinions, conclusions, adjustments, and value opinions contained herein were independently reviewed, verified, and determined by the undersigned appraiser.

The use of artificial intelligence software did not replace the appraiser's professional judgment, market analysis, verification procedures, or compliance responsibilities under USPAP and applicable client requirements. The undersigned appraiser accepts full responsibility for the content, analyses, conclusions, and opinions expressed in this report.

The CHATGPT recommendation was signed: [in a self-deprecatory perspective way more interesting & humorous than I can imagine] as.....

Regareds,
Master C

 

[ZZGAMAZZ]

For GSE work, it is the latter. Only the as repaired value must be developed.

Having said that, there is the ability to report both values when needed for other types of assignments (REO work, for example).

Hoping not to steal the 3.6 topic too far from center, however:

You indicated above that a GSE, lending assignment that requires both AS IS and ARV value requires only the ARV to be developed [and reported].

In that scenario, does the ASIS value need to be Reported but not necessarily Developed?--unsure if the Development that obviously is needed to obtain an OV could be conducted but maintained in the workfile rather than formally Reported in the Report. [I am asking sincerely because during the course of a few recent similar assignments, I realized that the ARV actually doesn't have any correlation to the ASIS value--although OTOH it is directly related, if a typical client needs the ARV to be based on an ASIS OV + construction budget including EI... and I wasn't very successful trying to explain to brokers that the appraisal OV is not, unfortunately, based on the construction budget--although I could have been hired as a consultant to tell them earlier in the process that they would be spending much more than the price of the purchase of a C5 or C6 and the following renovation costs, than the ARV OV would support!!!! [More succinctly, does the GSE expect to see a correlatoin between AS and ARV based on the cost to renovate? Is so, does the AS IS require an Effective Date to be reported?????