03/07/2026
*REAL ESTATE INDUSTRY UPDATE*
🏡
This week I attended an appraisal update seminar, hosted by Independent Bank - Carrie Aeschliman.
Very valuable info was shared by 30+yr veteran appraiser...
This is the year (NOV 2026) where the changes will need to be implemented 💯.
Sticking Points that I personally took away which I felt would affect the consumer:
👍👍Market Condition Adjustments (see chart); value adjustments will be made based on the comparable's sale date to keep in line with the subject's local market increasing/decreasing or even stable values.
👎👎Measuring Guidelines; these were adjusted back 2021 and now they will be enforced. The main change is factoring in Ceiling Height when verifying gross living area/above ground square footage. If your ceiling heights are LESS than 7ft...you cant count that area in the square footage. Appraisers WILL now be required to measure ceiling heights.
For more on this topic, feel free to google "ANSI Z765-2021".
This is going to affect nearly every farmhouse, cape cod, bungalow, A-Frame, and bi-level. It will give these style of homes less "square footage".
👎👎UAD 2.6 -> UAD 3.6; this Sept, a new form/format will be used for appraisals. My opinion?... the next step to ushering in AI. This new form sounds to me like its more algorithm based. My opinion, unless you are pulling direct neighboring comps of the same exact model inside a subdivison of homes built by the same builder, using the same standard finishes in all homes...no two homes are alike! Similar, sure, but an algorithm isnt going to pick up on those things that are not similar. This is going to be extremely frustrating for a lot of people.
These were the main items of concern.
What to expect:
- Prediction: price of appraisals may double, certainly increase. Right now a SFH appraisal is in the neighborhood of $500.
- Square footages are going to be all over the map and out of whack. Tax records are not going to match, among other things. This will also start to put a damper on the values of the homes affected by ceiling heights.
- There will be an adjustment period, without a doubt, to get used to and work the kinks out of the algorithms that will now be used.
If you would like to read up some more on these nation wide changes, National Association of REALTORS® wrote up a decent article to further explain:
https://www.nar.realtor/magazine/real-estate-news/appraisals-will-look-very-different-in-the-near-future-are-you-ready
If you would like to chat more about changes coming to the Real Estate Industry, please give me a call to pick my brain! I love to share my wealth of knowledge.
Also...if these items may affect your home value this Fall, give me a call and lets get it listed this Spring!!! Lol...I'm always here to help 😁
- Jennifer Wojtowicz
Broker/Owner/Realtor
Proper Property Services
734-926-9270
