"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.

In this week’s episode of AskNAN, we explain:

  • How UAD 2.6 treated “recent construction”
  • How UAD 3.6 clearly defines C1
  • Why a home completed more than 12 months ago may no longer qualify as C1
  • Why occupancy or use—including model homes—can change the condition rating
  • The difference between C1 and C2 under the new reporting standard

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Catch up on all of our "AskNAN" episodes

"Brand New, Never Lived In. C1 or C2?"

In this episode of AskNAN, we explain:

  • How UAD 2.6 treated “recent construction”
  • How UAD 3.6 clearly defines C1
  • Why a home completed more than 12 months ago may no longer qualify as C1
  • Why occupancy or use—including model homes—can change the condition rating
  • The difference between C1 and C2 under the new reporting standard

"New Build, New Rule: UAD 3.6 Changes Update Status"

In this episode of AskNAN, we explain:

  • Why “Not Updated” is still correct under UAD 2.6
  • Why new construction is now reported as “Fully Updated” under UAD 3.6
  • Which sections of the report this change affects
  • What Appendix F-1 says about new construction and update status
  • Why “muscle memory” could lead to reporting errors during the transition

"Cosmetic or Collateral? Where Appraisers Draw the Line" '

In this episode of AskNAN, we explain:

  • What the “Three S’s” (Safety, Soundness & Structural Integrity) really mean
  • The difference between cosmetic conditions and collateral deficiencies
  • When an appraiser should adjust for a condition versus making the appraisal subject to repairs
  • When a qualified professional inspection is required instead
  • Why collateral risk, not cosmetic appearance, drives these decisions

"Do lenders need to order a full appraisal on every loan?"

In this episode of AskNAN, we explain:

  • What a standard appraisal waiver means
  • The difference between waiver + data products like ACE + PDR and Value Acceptance + Property Data • How hybrid appraisals work
  • How desktop appraisals differ from hybrids
  • When an appraiser is—and isn’t—involved in the valuation process
  • How lenders can determine which options are available for a loan

"There's a two-part rule for prior services. Are you doing both?"

In this episode of AskNAN, we explain:

  • The difference between client disclosure and certification disclosure
  • When prior services must be disclosed
  • Why simply informing the client isn’t enough
  • How legacy appraisal forms can contribute to compliance mistakes
  • The risks of relying on canned commentary and template addenda
  • How UAD 3.6 helps prevent missed disclosures through dynamic certifications

"They paid for the report. That doesn't make them your client? '

In this episode of AskNAN, we explain:

  • Who the appraiser’s client actually is
  • What USPAP’s Confidentiality section of the Ethics Rule protects
  • Why assignment results cannot be shared with unauthorized parties
  • Whether borrowers can obtain a copy of the appraisal
  • How appraisers should respond when contacted by borrowers or other lenders

"Can a client ask an appraiser to remove a comparable sale from an appraisal report?"

In this episode of AskNAN, we explain:

  • Why analyzed comparables become part of the appraisal record
  • What the appraiser certifications say about withholding information
  • The difference between asking questions and directing deletions
  • How appraisers can properly revise a report when reconsidering a comp
  • Why transparency and commentary matter in the revision process

"Revision, Redo, or New Assignment?"

In this episode of AskNAN, we explain:

  • Client and intended user changes
  • Intended use changes
  • Different definitions of value
  • Effective date changes
  • Subject property modifications 
  • Assignment condition changes involving hypothetical conditions or extraordinary assumptions

"Will you still need to use Control-F to find things on the new UAD 3.6 report?"

In this episode of AskNAN, we explain:

  • Report Field IDs
  • When a field is required
  • Allowable responses
  • Definitions and reporting guidance

"If an appraisal review disagrees with the report, does that mean the appraisal is flawed?"

In this episode of AskNAN, we explain:

  • The difference between QC reviews, underwriter reviews, and field reviews
  • The reviewer’s responsibility under USPAP
  • Why reviewers must assess the reasonableness of the original appraiser’s methods—not just substitute their own •
  • The importance of data, analysis, and support behind any review finding

"Stewart Valuation Intelligence recently acquired Nan. Does that mean AskNan is going away?"

In this episode of AskNAN, we explain:

  • Why the Ask NAN brand will evolve under the SVI umbrella
  • What this means for clients, appraisers, and the industry 
  • How the acquisition brings broader technology, expanded capabilities, and scalable resources •
  • Why the same team, service, culture, and commitment remain in place

"Do solar panels increase a property’s value?"

In this episode of AskNAN, we explain:

  • Passive solar systems used for heating
  • Solar PV panels that produce electricity
  • Owned solar panels may contribute to value
  • Leased panels or those under a Power Purchase Agreement (PPA) are considered personal property and cannot be included in the appraisal

"Can too much commentary actually hurt an appraisal report?"

In this episode of AskNAN, we explain:

  • Redundant commentary – restating what’s already shown in the report
  • Generic commentary – vague, template-driven language that lacks specificity
  • Contradictory commentary – comments that conflict with the data or analysis

"Is the 1004MC addendum dead?"

In this episode of AskNAN, we explain:

  • The difference between market trends and time (market change) adjustments
  • Why a 12-month trend alone isn’t enough
  • Why zero adjustments still require support 
  • The limitations of the 1004MC under UAD 2.6
  • Why the 1004MC disappears entirely under UAD 3.6

"Is Gross Living Area (GLA) still relevant?"

In this episode of AskNAN, we explain:

  • Why GLA is no longer a defined term under UAD 3.6
  • How the new structure improves clarity and precision
  • What “nonstandard” finished areas actually represent
  • Why using legacy terminology can create reporting issues

"The 1004D Myth: When an Inspection Already Solves the Problem"

In this episode of AskNAN, we explain:

  • Why appraisers defer certain conditions to qualified professionals
  • What information the inspection report already provides
  • Why a 1004D may not add new expertise in this scenario
  • What agency guidance says about lender responsibility

"How will readers of the new dynamic URAR identify the type of inspection actually performed?"

In this episode of AskNAN, we explain:

  • The Property Valuation Method in the Summary section
  • The detailed Scope of Inspection by Appraiser fields 
  • The dynamic Certification 10 language that updates automatically

"Isn’t the effective date just the day the appraiser showed up?"

In this episode of AskNAN, we explain:

  • The difference between the effective date and the signature date
  • Why value is anchored to a specific point in time
  • How post-effective-date events are handled •
  • Why changing the effective date creates a new assignment

"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