"AskNAN" featuring Bill Waltenbaugh
As a trusted valuation company, you can imagine we receive questions every day about appraisals, the ever-changing landscape of the mortgage industry, as well as compliance and regulatory concerns. Each week our Chief Appraiser, Bill Waltenbaugh, takes a question we receive often and answers it in easy to understand relatable examples.
Want to be a part of "AskNAN?" Have a Question? We want to hear from you! Follow NAN and you may see your question featured on social media.
Catch up on all of our "AskNAN" episodes
"Have you ever used a 'Hypothetical Assumption'?"
In this episode of AskNAN, we explain:
- What an extraordinary assumption really means
- When it’s appropriate to use one
- What defines a hypothetical condition
- Why the distinction matters for credibility and compliance
"Does a county use code automatically tell you how a property is legally zoned?"
In this episode of AskNAN, we explain:
- What county use codes actually represent
- Why zoning is the true legal authority
- Who controls each source of information
- How zoning ties directly into highest and best use analysis
"Market Trend vs Time Adjustment"
In this episode of AskNAN, we explain:
- The difference between 12-month market trends and actual time adjustments
- Why markets are rarely linear
- When a zero time adjustment can be both reasonable and compliant
- Why zero still requires just as much support as positive or negative adjustments
"What makes a good comparable sale?"
In this episode of AskNAN, we explain:
- Why proximity and sale date are filters—not the final answer
- How buyer behavior drives comparability
- The role of location, design, utility, size, condition, and market reaction
- Why substitution is the real test of a comparable sale
"Why do appraisers adjust comparable sales?"
In this episode of AskNAN, we explain:
- Why adjustments are applied to the comparable, not the subject
- How buyer reaction—not guesswork—drives adjustments
- Why concessions on comps must be adjusted (but not on the subject)
- How the principle of substitution guides the entire process
- How properly applied adjustments help test the credibility of the value range
" What does the adjusted value range tell us about the adjustment process?"
In this episode of AskNAN, we explain:
- Why a tightening range is a sign of strong analysis
- What it means when the adjusted range widens instead
- How substitution explains buyer behavior
- How appraisers use the adjusted range as a credibility check
"Hiring the Appraiser Doesn’t Mean Controlling the Value"
In this episode of AskNAN, we explain:
- The difference between AMC panel appraisers and staff appraisers
- Why most appraisers engaged by AMCs are independent contractors
- How AMCs use both staff and panel appraisers to ensure geographic competency, coverage, and capacity
- The roles AMCs do employ appraisers for—like quality control, compliance, and review
"Did it feel like the appraisal industry experienced a lot of change this past year?"
In this episode of AskNAN, we explain:
- While 2025 brought noticeable shifts, more scrutiny from QC and underwriters, increased focus on comp selection, condition ratings, reconciliation, and more borrower-facing questions through the ROV process—these changes are just a preview of what’s ahead.
- As UAD 3.6 moves into full stride in 2026, the industry is entering a new phase
" What lands an appraisal on an underwriter’s naughty list?"
In this episode of AskNAN, we explain:
- Most common red flags that trigger revision requests, including missing photos, weak reconciliation, unsupported or inconsistent adjustments, condition and quality mismatches, and questionable comparable selection.
- What keeps reports on the nice list: clear reporting, complete documentation, well-supported adjustments, and comparables that truly reflect the market.
"Will AVMs and AI Replace the Traditional Appraisal?"
In this episode of AskNAN, we explain:
- AVMs can generate predictions, but appraisals deliver conclusions that can be reviewed, challenged, and defended.
- From the role of reconsiderations of value (ROVs) to the importance of professional judgment, this episode explains why technology isn’t replacing appraisers—it’s reshaping the way appraisal work gets done.
"The Truth About Diminishing Returns in Real Estate"
In this episode of AskNAN, we explain:
- Why the “first acre” matters more than the 5th, 10th, or 20th
- How bedroom and garage bay counts impact value differently
- Why value adjustments aren’t one-size-fits-all
- What appraisers really mean when they say: “It depends.”
"Why do appraisers include listings in the market approach?"
In this episode of AskNAN, we explain:
- How listings help confirm value in a stable market
- Why they’re critical in appreciating and declining markets
- How adjusted listings define the ceiling using the principle of substitution
- Why agencies and lenders often require listings when market conditions shift
"How can two appraisers evaluate the same property and still arrive at different values?"
In this episode of AskNAN, we explain:
- Two qualified appraisers can follow the same standards, analyze the same market, and still take slightly different approaches — selecting different comparables, weighing features differently, or supporting their conclusions through different analytical paths.
- What Matters most? Clear reasoning, Credible support ,USPAP-compliant analysis, and a defensible conclusion
"Does a finished basement count toward square footage and room count in an appraisal?"
In this episode of AskNAN, we explain:
- Why finished basements do not count toward GLA
- When they can be included in total square footage and room count
- How basement space contributes to value, even when excluded from living area
- The rules for applying GLA vs. GBA on 2–4 unit properties
"What is FIRREA, and are all appraisals FIRREA-compliant?"
In this episode of AskNAN, we explain:
- When Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) (and when it doesn’t)
- The core requirements for a FIRREA-compliant appraisal
- How NAN ensures every report meets credible, independent, and ready-for-lender-review expectations
"Can I Revise My Appraisal When the Contract Price Changes?"
In this episode of AskNAN, we explain:
- When a revised report is acceptable
- Why the original contract details must remain in the report
- When a new appraisal is required instead
"C3 vs. C4: The Truth About Condition Ratings"
In this episode of AskNAN, we explain:
- Learn how to tell the difference between well-maintained and moderately worn properties
- Discover what documentation and photos support your choice
- Hear real-world examples straight from the field
"Can Two Properties with the Same Condition Rating Still Require an Adjustment?"
In this episode of AskNAN, we explain:
- C3 doesn’t mean “identical condition”
- Support adjustments with commentary and photos
- Think “extra leg room”—same section, different value
"Absolute, Not Relative: Getting Condition Ratings Right?"
In this episode of AskNAN, we explain:
- Absolute, Not Relative: Getting Condition Ratings Right
- Why Two Properties with the Same Rating May Still Need an Adjustment
- C3 or C4? The Great Debate
"Can you use the subject property as a comparable sale?"
In this episode of AskNAN, we explain:
- When Fannie Mae allows the subject to be used as a comparable
- How prior sales can support time adjustments and market trends
- The importance of clear commentary and credible analysis
"Do appraisers still have to drive by comps under UAD 3.6?"
In this episode of AskNAN, we explain:
- Why the old requirement of inspecting comps “from at least the street” is gone
- What UAD 3.6 now expects from appraisers
- How to source and provide accurate comparable photos (MLS, Street View, public records, or original)
- Why you still need to verify and analyze reliable data for every comp
"Can a house really have zero square feet and no rooms?"
In this episode of AskNAN, we explain:
- Why Fannie Mae retired the “GXX001” exception code
- How ANSI now requires appraisers to classify living area as above-grade or below-grade
- Why certain homes may show zero above-grade living space
- The key declarations appraisers must include when ANSI limitations apply
"Is it a Single-Family with an ADU, or a Two-Unit Property?"
In this episode of AskNAN, we explain:
- What counts as an ADU?
- When does it become a two-unit property?
- Why does the distinction matter in appraisals and lending?
- Break down the key definitions from HUD, Fannie Mae, and Freddie Mac and explain how appraisers determine the difference
"Does a bedroom need a closet to count on an appraisal?"
In this episode of AskNAN, we explain:
- Why closets are more like “cup holders” than requirements
- How appraisers determine if a room counts as a bedroom
The role of egress, heating, and privacy - How the absence of a closet might affect marketability
