Do You Know that Real Estate Appraisals Are Changing?
By: Steve Fussell, Chief Consumer Protection Officer
November 2, 2026, is the deadline for real estate appraisers to begin using a new appraisal form (UAD 3.6). Some lenders are already requiring the use of this new form. To complete the new form, it is possible that appraisers will contact listing agents more often than in the past to obtain information regarding properties.
To educate licensees on this change, the Commission has included a section on appraisals in its 2026-2027 Mandatory Update Course that will be available in July 2026. We strongly encourage you to take the course as soon as possible.
Other important points regarding appraisals:
- A lender hires an appraiser to determine the value of the property for which a buyer wants to borrow money so that, in the event of the buyer’s default on the loan, the lender will know how much it can reasonably expect to recover through foreclosure. Even though a lender will collect money from a buyer to pay for an appraisal, the lender orders the appraisal and is the appraiser’s client. Therefore, if a lender orders an appraisal, brokers should never refer to the appraisal as the “buyer’s appraisal.” You should refer to the appraisal as “the appraisal performed for the buyer’s lender.” Alternatively, if a buyer is paying cash for a property and decides to order an appraisal, then the buyer is the appraiser’s client and the appraisal would be the “buyer’s appraisal.”
- A broker may provide any information or documentation requested by an appraiser. However, Rule A .0120(c) prohibits a broker from influencing or attempting to influence an appraiser’s decision of value.
- Buyer agents should make a habit of (1) asking their buyer-clients to obtain copies of the appraisal reports from their lenders as soon as the reports are available and (2) carefully reviewing the reports and disclosing material information, such as square footage and other information that a reasonable buyer would want to know. If the square footage in the appraisal report differs from the advertised square footage in the MLS, then a buyer agent should look for “below grade” square footage in the appraisal report to see if it explains the difference.
- Buyers who pay cash for properties rarely order appraisals, because there is no requirement to do so. However, an appraisal can provide useful information to a buyer, such as square footage verification and other property information. NC Realtors Form 760 (Professional Services Disclosure and Election) includes “appraisal” in the list of services. Brokers who represent and/or assist buyers should explain the value of an appraisal so that buyers can make informed decisions rather than dismiss an appraisal just because it is not required.