UAD 3.6 & UPD Synergy: Reshaping the Future of Appraisal Workflows

Hey fellow appraisers, John Anderson here. There's been a lot of discussion swirling around the Uniform Appraisal Dataset (UAD) 3.6 and the proposed Uniform Property Dataset (UPD). While we've covered the specifics of timelines, data fields, and the shift away from form numbers in previous posts, today I want to step back and look at the bigger picture: how these two initiatives, working in tandem, might reshape our appraisal workflow in the future.

It's important to understand that UAD 3.6 and UPD aren't just separate updates; they represent a potentially synergistic approach by Fannie Mae and Freddie Mac (the GSEs) to modernize property valuation. UAD 3.6 focuses on standardizing the output – the appraisal report itself, moving towards the dynamic Uniform Residential Appraisal Report (URAR). You can refresh your memory on this shift in our post on Appraisal Reporting Evolution: From Static Forms to Dynamic Data.

On the other hand, the UPD is proposed as a standardized way to handle the input – the property data collection process itself. This is particularly relevant for desktop and hybrid appraisals, aiming to create consistency regardless of who collects the data. For a deeper dive into UPD itself, check out Decoding the Uniform Property Dataset (UPD): What Appraisers Need to Know.

The Potential Synergy: Standardized Input Meets Standardized Output

So, what happens when you combine a standardized method for collecting property data (UPD) with a standardized, dynamic framework for reporting it (UAD 3.6)? This combination could lay the foundation for significant shifts in how we work:

1. Streamlined Data Flow: Imagine a future where property data collected via a standardized UPD process flows more seamlessly into the dynamic UAD 3.6 URAR structure. This could reduce redundant data entry and minimize errors that arise from translating data between different formats or legacy forms.
2. Enhanced Technology Integration: Standardization is the bedrock of automation. With consistent data points (UPD) feeding into a predictable report structure (UAD 3.6), software developers might be able to create more powerful tools. We could see advancements in automated data population, preliminary analysis generation, and integrated quality control checks. Tools utilizing technologies like LiDAR for floor plans and AI for feature recognition, such as Valuemate, are being developed in anticipation of this more structured data environment, potentially automating sections like the sketch, area calculations, and even identifying certain property features.
3. Shifting Focus: If technology can reliably handle more of the routine data collection and report formatting based on these standards, it could free up appraisers to concentrate on higher-level tasks. This might mean spending less time on manual form-filling and more time on complex analysis, market interpretation, adjustment justification, and addressing unique property characteristics – areas where appraiser expertise is irreplaceable. We touched on this potential evolution in The Evolving Appraiser: How UAD 3.6 & UPD Might Reshape Skills and Roles.
4. Facilitating Modern Appraisal Types: The UPD is explicitly designed to support desktop and hybrid appraisals by providing a consistent data set even without a traditional inspection by the appraiser signing the report. UAD 3.6 complements this by offering the flexible reporting structure needed to accommodate these different valuation service types within the URAR framework.

What This Could Mean for Your Daily Workflow

While the full realization of this vision is still down the road, and subject to the GSEs' final decisions and timelines (keep an eye on developments like the UAD 3.6 Limited Production Period (LPP)), considering the potential workflow changes is prudent:

• Data Curation Over Data Entry: Your role might involve more verification and curation of data, potentially collected through various means (including third parties or advanced technology), ensuring its accuracy and relevance within the UPD framework.
• Emphasis on Analytics: The ability to critically analyze market data, justify adjustments logically, and reconcile different value indicators will likely become even more central to the appraiser's value proposition.
• Technological Adaptability: Staying current with new software tools and data collection methods could become increasingly important for efficiency and competitiveness.

The journey towards UAD 3.6 and the potential implementation of UPD signifies a clear direction from the GSEs towards a more data-driven, standardized, and technologically integrated appraisal process. While change can bring uncertainty, it also brings opportunity. By understanding the potential synergy between these initiatives, appraisers can better prepare for a future where their analytical expertise and market knowledge remain paramount, possibly enhanced, rather than replaced, by technology.