Tag Archive for: appraiser

UAD 3.6 Key Changes (And Resources You Need to Know)

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We’re all hearing more and more about the new Uniform Appraisal Dataset (UAD 3.6). Some of you may have even gotten inquiries from lenders or financial institutions already.

Are you ready for it? If not, you’ll need to be very, very soon.

UAD 3.6 is a complete rethinking of how valuation data is structured, communicated, reviewed, and delivered. And whether we love it or hate it, this will soon become the way appraisal work is done.

Will this require adjustment? Absolutely. The first few reports might feel like you’re learning appraisal all over again.

The good news? Once you understand it — really understand it — you might find you actually like the new structure. You might even wonder how we ever tolerated the old forms for so long. But to get there, I’d like to walk through some of the biggest changes that caught my eye.

So grab your coffee, settle in, and let’s take a look.

The Best Place to Start

Want to get some additional education on UAD 3.6? Start with FannieMae.com/UAD. I’ll be referencing this a LOT throughout this article.

This page has lots of documents, videos, sample reports, etc., and it’s all free. But one document should be your new best friend, and that’s the Appendix F1 URAR reference guide. It’s a PDF download with a ton of information. 

Fair warning, if you’re thinking about printing it out, know this: it’s currently 375 pages. I have one printed on double-sided paper, and it’s still huge. The digital copy may be a better option, especially because it’s searchable.

Key Changes to Note:

Material Difference

One of the first things appraisers notice about the new UAD is the way property characteristics are captured. Gone are the days of squeezing every nuance into a comment box the size of a Post-it note. Instead, the new system requires us to think more like data scientists — a structured, repeatable process that logically organizes the characteristics of each property.

That includes thinking differently about what counts as a “material difference.” Appraisers have always had to consider market-relevant features, but now those distinctions need to be expressed in a standardized way.

For example, when the new UAD asks about property characteristics, it’s not just saying, “Describe the house.” It’s asking:

  • What features drive value?
  • What features define the market?
  • What features set this property apart from the competition?

Things like location, site size, garage, and condition might be material. But depending on your market, other factors like barns, outbuildings, fencing, and even access road type could also matter. The important part is consistency: describing similar qualities in similar ways across your reports.

And yes, some of you are already muttering, “Bryan, appraisers have always done this.” True. But the difference is how the information is captured. The old forms forced us to make narrative descriptions do the work of structured analysis. The new system flips that. Narrative still matters, but structured data comes first.

Comp Drive-bys

True story: There was a guy (let’s call him Steve) who was in Horse Branch, KY taking comp photos. He drove up to Hartford and stopped at a funeral home. You may wonder, “why did he stop at a funeral home?” Well, at that time, one of the funeral home’s owners, Danny Schapmire, was also an appraiser. (A great appraiser, actually, and a stellar human. He has since passed.) This county had limited data, and we’d always go ask Danny for data that we couldn’t find ourselves. 

Steve walked in and said, “Danny, I’ve got a subject property. You got any comps you know of?” 

Then, another man came into the funeral home right after him, furious, asking, “Where is he?” 

Danny immediately tried to calm him down and asked what was going on. The man said, “There was some guy in front of my house taking pictures, and his truck’s parked in front of your funeral home. If I find him, he might end up staying here.”

This guy was mad.

Danny was able to calm him down and explained, “Look, you bought your house a few months ago. He’s an appraiser like me. Part of our job is to find comparable properties, and since your house sold a few months ago, he’s using it as a comparable. He’s not casing your house or anything.”

The guy eventually left, and everything was fine in the end. But that stuff really happens, and I’m sure you have similar stories from your own experiences hunting down comp photos. I know I’ve got an abundance of them. 

The new UAD 3.6 changes the game on comp drive-bys. The reference guide states: “The creation of UAD 3.6 has allowed us to revisit this requirement. While we still require clear descriptive color photos of the front of each comparable, we have retired the requirement to inspect the comparable sales from the street.”

Personally, I’m glad they’re retiring that policy.

Ceiling Height

If you were to search for “ceiling height” within the F1 reference guide, you’ll find that one of the references (report field ID: 10.045) details when to include it, and the answer is always. But I’m going to back up real quick and read what it says about starting under walls and ceiling. 

“The appraiser must…” Must is not a suggestion, folks; must means you have to do it — i.e., “provide information about the walls and ceilings in the unit.”

The walls and ceilings row always displays in the interior features table, and you have to choose one or more of the allowable answers. So ceiling height (that is, the approximate ceiling height in the unit, rounded to the nearest foot) is always required.

How are you going to get that ceiling height? Well, I’d guess you’re going to measure it. And for those of us that use a laser or something similar, it should be pretty easy. For those of you using a tape measure — don’t. I like to tease people when we come to this one and say, “If you’re using a fiberglass tape measure, and you have to carry around a ladder and get on a ladder to measure something, videotape yourself. I want to see you doing that.” (But actually, don’t do that. It’s dangerous. Instead, invest in a laser or some sort of device where you can grab that measurement more easily.) 

Is this a big deal? That’s up to your interpretation. But whether you love or hate this change, it is a new requirement. 

Broadband Internet

Let’s talk about one of the more surprising features in the new UAD: broadband availability.

Yes, you read that right. In 2025, internet access joins the ranks of site, view, and utilities. And honestly, it’s about time. If you’ve ever tried to run your business off two bars of rural cellular service, you know that internet speed can be a real market factor.

It’s a simple question – “Is broadband internet available?” — and your answers are yes and no.

If you check “yes,” you’re confirming high-speed internet access is publicly available exclusively through a digital subscriber line, fiber optic, or cable. If you answer “no,” you’re saying public high-speed internet access is unavailable, or it’s only available through a private satellite. If it’s a satellite, it’s a no. You might say, “Well, what if it’s Starlink? Is that a satellite?” Nope, the answer is still no. 

But how do you verify it?

I’ll admit, when this initially came out, I was a little concerned. Here’s why.

A buddy of mine bought a house, and one of his conditions was, “Is there broadband readily available?” The MLS listing said yes. The seller said yes. Everybody said yes. So, he bought the house. But when he was changing the utilities over to his name, he called the internet service provider and said, “Hey, I need to schedule to get the highest speed internet access available to my house. I work at the hospital as an IT specialist, and I’ve got to be ready to spring into action at a moment’s notice, in the event something goes bad.” 

To his surprise, they said, “Sorry, but high speed internet is not available at your house.” 

He naturally responded, “Whoa, I just bought this house. This is a newer subdivision. And I was told I had broadband internet here.” And they said, “Well, it is readily available to your subdivision, and it’s even readily available to your street. The problem is, it’s across the street, not on your side of the street.”

Obviously, he wasn’t happy. In fact, he was pretty upset. The hospital could call him at 2:00 in the morning, and he’s one of the few guys there that has to be available at all times. He had to have high-speed internet. It was quite literally life-or-death, in some cases. So he asked, “Well, what do I have to do to make it available?” 

They replied, “Well, we could get it to your side of the street, and we can have somebody out there next week, but it’s going to cost you $13,000.” Excuse me? $13,000 in unexpected expenses?

So the question is: Would he have recourse against the individual that sold him that house? Honestly, I don’t know. I’m not an attorney or a judge. But he may try.

So, what if I was the appraiser in that case? And I relied on the seller or the MLS, only to find out, yikes, the internet’s not readily available. That would have been bad, right? This is why I was really concerned when I first saw this change.

Personally, I would do two things. 

1. Ask the homeowner.

My company has a questionnaire we give to homeowners. This questionnaire has lots of information that we want to ask anyway. “Has your property been offered for sale in the last 12 months? Have the kitchens and bathrooms been updated recently? When was that done?” Then we include some disclosure statements. And guess what I’m probably going to add to this questionnaire now? “Is there broadband internet available to your house?” I’ll give the definitions as prescribed in the F1 reference guide. This way, at least I have that in my work file. We always make these questionnaires part of the appraisal report.

2. Search the FCC Broadband Map.

If you go to the FCC Broadband Map at broadbandmap.fcc.gov/home, you can search by address. (Yes, it’s an actual federal website. Yes, it’s surprisingly user-friendly. I know, I was shocked too.) It’ll tell you all about broadband availability. You can also save and/or take a screenshot of the page, and add that image right into your appraisal report. I’ll be utilizing this resource in all my reports.

Environment

Another major theme in the new UAD is understanding the broader environment around the subject property. In other words:

  • What influences buyer behavior?
  • What affects value outside the four walls?
  • What external factors shape the market?

This includes everything from land use trends to hazards, public utilities, environmental risks, and much more. The new structure forces appraisers to think comprehensively — not just about the property itself, but about its context.

This isn’t busywork. It’s what we should have been doing all along. The new format simply makes the expectations clearer and the results more consistent.

Change Is Hard

Appraisers are not known for embracing change. We’re in our routine. We love our routine. 

The new UAD is a big change. Yes, it feels like a lot right now. Yes, there will be frustration. Yes, you’ll be tempted to mutter a few choice words at your computer screen. But this is the new standard. This will become your new routine. And once it is, I think you’ll be glad. And I don’t think you’ll want to go back to the way we were doing it before. 

If you want to start digging deeper, visit FannieMae.com/UAD. That’s the official site, full of documentation, resources, examples, FAQs, and even sample reports. Once you see how it all comes together, I think you’ll feel more confident about making the transition.

Be prepared, be ready to adapt, and get out there and make some money. 

Closing Thoughts: Your Biggest Asset

Before we wrap up, let me offer one little reminder: Your number-one asset in life isn’t your business, your license, your expertise, or your fancy laser measuring tool.

What is your biggest asset? You may have a nice car, a nice house, a lot of money in the bank, and those are all wonderful assets. But if you lose your car, you can get another one. If you lose your house, you can get another one. If you lose your wealth, you can rebuild. I’ve been on top of the mountain, and I’ve been at the bottom of the mountain, and everywhere in between (the top’s better, trust me). But that’s just stuff. You can replace stuff. 

Maybe it’s because I’m getting a little older, but there’s one asset I know I can’t get back.

It’s time.

Time with family. Time with friends. Life outside of work. These are the things that actually matter.

You can always write another report. But you can’t get back lost time, missed experiences, or relationships with your loved ones. So turn your phone upside down, or even better, turn it off, and enjoy that most valuable asset you have — time.

Happy appraising. Happy living. —Bryan Reynolds

 

This article has been adapted from a recent episode of the Appraisal Update Podcast with Bryan Reynolds, which you can view here:

 

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Understanding Fannie Mae’s New Market Conditions Adjustments Policy

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Last spring, Fannie Mae introduced a policy update that had appraisers and lenders talking. But this change was really just a reminder of what’s already standard practice: analyzing and adjusting for market conditions in every appraisal. The new guidance comes with a stronger push for appraisers to document time adjustments when the market demands it (and for the lenders who review their work to expect it).

If you’re not familiar with the term, time adjustments (aka market condition adjustments) account for how a property’s value changes over time—specifically, between the date a comparable property went under contract and the effective date of the appraisal. In a volatile market, those changes can be significant, even over the course of a few weeks.

What Spurred the New Guidance?

We saw real estate prices go crazy during the pandemic. At the time, Fannie Mae flagged a lot of appraisals for not including time adjustments, even when data supported them. When asked why, appraisers often gave the same answer: “When I make a time adjustment, the lender pushes back. It’s a headache I’d rather avoid.”

The problem wasn’t just with appraisers. Lenders, underwriters, and reviewers often saw time adjustments as problematic and unnecessary, so a lot of appraisal reports went out without acknowledging the very real market changes that had occurred.

The new policy is meant to change that mindset. By explicitly stating that market-derived adjustments (including time adjustments) are a necessary appraisal practice, Fannie Mae is sending a clear message to lenders: expect to see them. And to appraisers: you must do the analysis, every time.

What’s in the Updated Selling Guide?

Fannie Mae’s Selling Guide now includes two key additions related to market condition adjustments:

  1. Failure to make market-derived adjustments, including time adjustments, is unacceptable. If the data supports it, it should be in the report. This applies whether the market is rising, falling, or flat.
  2. Comparable sales must be analyzed for changes in market conditions. There’s no exception to this. Appraisers must analyze the data first, then decide if an adjustment is warranted based on that analysis—not the other way around.

The guide also clarifies what constitutes acceptable evidence for a time adjustment: home price indices (HPIs), statistical analyses, paired sales, modeling, or other commonly accepted methods. Bottom line: almost any credible evidence is better than none. Fannie Mae understands that appraisers in high-data urban markets may have sophisticated MLS tools, while appraisers focused on rural or unique-properties may need out-of-the-box approaches.

So, How Do I Support My Adjustments?

A big part of the update focuses on reporting. It’s not enough to simply list “+1%” or “+$70 per square foot” in your grid. Fannie Mae wants to see the math—how you arrived at that figure, what data you used, and why it applies.

The Selling Guide even includes an educational chart for lenders showing how adjustments vary depending on when each comparable went under contract. One comp might require a +2% adjustment, another +1%, and another a -1%—all in the same report—because each was tied to a different point in the market cycle. That’s normal. That’s the job: to analyze resales of the same property over time, isolating value changes that track market fluctuations. If a property sold for $200,000 two years ago and resold for $210,000 without any renovations, the $10,000 increase likely reflects market appreciation. By analyzing several of those resales, appraisers can reconcile a credible percentage adjustment.

Fannie Mae’s position? Yes, that’s an acceptable method. Again, almost any documented, reasoned analysis is better than no analysis.

Can I Use Older Sales?

The question often comes up: can you use a comparable sale older than 12 months? Absolutely. In fact, sometimes an older sale is the best sale, especially for unique properties.

Take the example of a two-story brick farmhouse built in the 1880s. In rural areas, there may be only one truly comparable home within miles, and maybe it last sold five years ago. If its physical and locational characteristics are nearly identical to the subject, that’s a better comp than a newer or dissimilar home. You’d just have to make a market condition adjustment for the five years of change, supported by data.

Another example: imagine two identical houses next door to each other, one of which sold 13 months ago. Common sense says you’d use it, making a time adjustment if necessary, rather than substituting a less comparable property just because of an arbitrary 12-month cutoff.

The Importance of Market Segmentation

Another point to ponder: not all properties in a market move in the same direction on the same schedule. A city’s overall market trend might be flat or declining, but certain segments, like starter homes, could still be in high demand and appreciating rapidly.

During the last housing crisis, large custom homes in some markets declined sharply, while smaller, more affordable homes gained value as buyers downsized. The appraiser’s job is to understand and document what’s happening in the competitive set of properties for the subject, not just in the broad market.

This means the one-unit housing trends box on the 1004 form should reflect the segment that competes directly with the subject, not an average of unrelated property types across the neighborhood. Be specific. Zoom in and see the details.

Don’t Overcomplicate Things

While the policy change stresses that you’ve got to do the analysis every time, Fannie Mae isn’t asking for a PhD dissertation in every report. Basic, common-sense market analysis—clearly summarized and supported—is often enough.

In many cases, choosing strong comps will make the market conditions adjustment much less complicated. If you have three recent, similar sales in the immediate area, the time adjustment may be obvious—or nonexistent. But you still need to document your analysis, even if it leads to a “0%” adjustment. The goal isn’t perfection; it’s credible, supported numbers.

Ultimately, this policy update is about shifting expectations. Fannie Mae wants time adjustments to be seen as normal and expected, not anomalies or headaches. Appraisers are still the local experts. It’s up to them to determine the correct rate of adjustment. Fannie Mae won’t nitpick the exact percentage as long as it’s supported by reasonable evidence.

Conclusion

The bottom line:

  • Do the analysis every time.
  • Document your reasoning.
  • Support your numbers with credible evidence.
  • Don’t ignore a relevant comparable just because it’s more than 12 months old.

And remember: it’s entirely possible to have a positive, a negative, and a zero market condition adjustment in the same report, if that’s what the data supports.

The new Fannie Mae guidance on market condition adjustments is less about changing appraisal methodology and more about reinforcing sound practice. It’s about making analysis and transparency the default, not the exception. For appraisers, this means more than just filling in a percentage. It’s about showing the work, explaining the reasoning, and making sure the report tells the full story of the market the subject property is in.

When the market is moving, buyers, sellers, lenders, and the public deserve appraisals that reflect reality. This policy is a step toward making sure they get them.

This article is adapted from this Appraisal Update Podcast episode from April, 2025.

 

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The Appraisal Summit: Get UAD 3.6 Intel, and Stay in Touch

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The Appraisal Summit | September 27 – 30 | Planet Hollywood Resort & Casino | Las Vegas, NV

There’s a LOT going on in the world of appraisal these days. The stakes are pretty high. And you’ve got questions.

The Appraisal Summit is your chance to get some answers and find out what can’t be known (yet) about the UAD 3.6 rollout, AI and appraisals, and more. Come to the place where everyone gathers: reps from the GSEs, software companies, insurance providers, and folks like you, the working appraiser. (See the schedule here.)

At the Summit, you’ll get tons of CE, face-to-face time with colleagues and industry bigwigs, and discussions about the huge issues that are lurking menacingly on your professional horizon. Grab the mic and ask those questions that are on your mind: Are software companies and lenders ready for UAD 3.6? Am I ready? How is AI going to change how I do my job? (Does anyone even know the answer to that one?)

Be courteous and curious. Keep an open mind. And just maybe, by the end of the conference, those issues won’t seem quite so menacing.

Here’s a possible itinerary:

  • Saturday 9/27: Get bonus CE on litigation support in the morning and on the cost approach in the afternoon. Have relaxed, civilized French bistro fare at Mon Ami Gabi, a short walk away at the Paris casino.
  • Sunday, 9/28: Get fully briefed (+ 7h bonus CE) on the new URAR with Bryan Reynolds. Then celebrate your deep learnings at the opening reception.
  • Monday, 9/29: Hear all about UAD 3.6 from the GSEs and the software companies. Reconnect at the NAA membership meeting, then sip a beverage with old friends at the Caramella Hidden Lounge.
  • Tuesday, 9/30: Dive into appraisal-related laws and regulations, AI, and the future of appraisal in the general sessions. Snag a Gordon Ramsay burger with a new connection and absorb all this new info together.
  • Wednesday, 10/1: Fly home rejuvenated by collegial connections and armed with accurate intel about what’s up in our industry.

There couldn’t be a more crucial time to be in the room with key players and colleagues facing the same questions you are. Not to mention that getting together with colleagues is a great way to break the isolation of day-to-day appraisal work. See old friends, celebrate and commiserate, and make memories! Click here to register.

The Appraisal Summit | September 27 – 30 | Planet Hollywood Resort & Casino | Las Vegas, NV | Co-hosted by the NAA & AeL (us!)

 

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Top 3 Mistakes Appraisers Make in Their Appraisal Reports

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After doing more than 2,000 appraisal reviews over the years, Bryan and his team have seen these same errors crop up again and again. Know them and avoid them.

I was an investigator for the state of Tennessee for many years. These days, I primarily help appraisers who find themselves in trouble. Sometimes we’re successful in resolving the issue entirely, or at least reducing the impact. Other times, it becomes a learning moment — we recognize mistakes, take responsibility, and strive to do better.

My team and I have conducted over 2,000 compliance, field, insurance, and litigation support reviews, and we’re noticing some recurring errors among appraisers. So let’s talk about the three most common errors we see appraisers make.

Hopefully, this will help you sharpen your tools and improve your practice.  Let’s get started.

Mistake #1: Omitting a key statement about an extraordinary assumption or hypothetical condition

Appraisers can gain some leeway with the right scope of work, and by properly using extraordinary assumptions and hypothetical conditions. But you must meet minimum reporting requirements.

It never hurts to review the definitions of “extraordinary assumption” and “hypothetical condition” in the USPAP standards. Then, check out Standard Rule 1, which talks about when it’s permissible to use these tools. There are three things you must do in your report if you’re using an extraordinary assumption or hypothetical condition. Most appraisers are doing the first two, but a lot are failing to do the third.

So let’s go over them. (And remember: forms don’t comply with USPAP— you do.)

Here are the three things you must do in your report:

  1. Clearly and conspicuously state when you are using an extraordinary assumption or hypothetical condition. That’s in Standard Rule 2-2(a)(xiii).
  2. State all extraordinary assumptions and hypothetical conditions. You don’t necessarily have to label them as such, but you do have to include them. For example: “I’m appraising this property as if the proposed house already exists, based on plans and specs.” That’s a hypothetical condition, even if you don’t explicitly call it that.
  3. State that the use of the extraordinary assumption or hypothetical condition may have affected the assignment results. This is the one that’s most often missed. It’s Line Item 702, and it’s critical. Even if you hate “can” or “may” statements (and I do), if that’s what it takes to be compliant, put it in there.

We see reports over and over where this final statement is missing. And that’s a problem. Reviewers have to note when they can’t find that language in your report, and that puts you in violation of Standard Rule 2-2(a)(xiii).

Mistake #2: Not summarizing the results of your analysis of the subject property’s prior sales

Let’s move on to the second most common mistake: prior sales. I’m talking about prior sales of the subject property and, depending on your form or client, even prior sales of comps or prior listings. Now, prior sales of comps aren’t a USPAP requirement, and neither are prior listings (unless they’re current), but prior sales of the subject property are a requirement. You’ll find this in Standard Rule 2-2(a)(x)(3). You’re supposed to summarize the results of your analysis of the subject’s prior sales, options, listings, etc.

Saying “the subject sold last year for $150,000” is not analysis. That’s just a statement of fact. What USPAP requires is a summary of your analysis. You’ve got to explain what that sale means in the context of your current appraisal, not just list the data point.

So, analyze the prior sale of the subject, and then in accordance with 2-2(a)(ix), summarize the results of that analysis. Maybe start a sentence by saying, “An analysis of the prior sale revealed…” then fill in the blank. This way, you’re answering the question you’re supposed to answer, and you’re summarizing the results of that prior sale or transfer.

Mistake #3: Including comps that aren’t really comparable

Here’s what landed in third place: including the universe of listings and sales as opposed to listing truly comparable sales.

The 1004 form, or the Uniform Residential Appraisal Report form, is what most appraisers use. This is a form many of you are very familiar with. At the top of page two, it says:

“There are ___ comparable properties currently offered for sale in the subject’s neighborhood, ranging from ___ to ___.”

“There are ___ comparable sales in the subject’s neighborhood within the past 12 months, ranging from ___ to ___.”

Now, if you truly are in an area where all the listings and sales in a neighborhood are in a competitive state for the same properties, then I guess you’d fill that in accordingly. But how often does that happen? I mean, are the two-bedroom homes competing for the same buyers as the four-bedroom homes?

I get it: we’re not searching just on price here. But isn’t that often how the market looks at buying property? They say, “This meets my utility. This fits my desires. This reflects scarcity. This fits my purchasing power.”

So, if you fill in the blanks with a range of prices from $90,000 to $2 million (yes, I’ve seen that), do you really think someone buying a $90,000 home has the purchasing power to buy a $2 million home? And do you think someone buying a $2 million home wants to buy a $90,000 home?

Maybe they’re pretty similar, but the $2 million property has a $1.9 million view — and the buyers are willing to pay for that — while the $90,000 property doesn’t. There can be all kinds of caveats, of course. But in general, when you put 720 comps in there, ranging from $90,000 to $2 million, it makes the reader scratch their head and wonder: are all of those truly “comparable”? Or are those just all the sales in a particular market area in the last 12 months?

Here’s a good rule of thumb: if you don’t feel like the sale would fit in one of these top positions — Comp 1, Comp 2, Comp 3, Comp 4, Comp 5, etc. — then it doesn’t belong up here in this equation.

And then, at least for Fannie Mae, keep in mind that where it says “Housing Trends” is actually comparable properties. The rest of it drives me crazy because, in bold capital letters, it says “Neighborhood” right here. So shouldn’t all this be relative to the neighborhood?

Yes. Say yes.

But that’s not what Fannie Mae says. Fannie says — and you can go to their Selling Guide to find this — that this one little box, “One-Unit Housing Trends,” should be comparable properties.

So, if all the properties in the neighborhood compete for the same buyers, then it would be one and the same. But if your subject property has certain comparables within that neighborhood that interchange with your subject property — and then there are others in the area that are not comparable — then this one little box, “One-Unit Housing Trends,” should just be comparable properties. (See B4 of the Fannie Mae Selling Guide on their website.)

Conclusion

I know we have lots of rules, regulations, requirements, lender overlays to deal with. I get a headache just thinking about it all. But stay in the loop. Educate yourself. And guys, get very familiar with USPAP, because it is your minimum requirement. Not a suggestion.

If you have a team, I’d encourage you to have regular meetings and talk about these things. And even if you’re a solo appraiser, find a way to collaborate with folks in the appraisal community. Join an association. Certainly, you can self-study and hone your skills, but the best way to stay sharp is to bounce ideas, suggestions, and techniques off one another.

Here’s a story I heard recently: Two lumberjacks arrived at 8:00 a.m. and chopped wood until 5:00 p.m. One lumberjack disappeared for an hour every day at noon. The other lumberjack did not. He might take a quick water break or something, but he was never gone for a whole hour.

The amazing thing? The lumberjack who disappeared for an hour always chopped more wood by the end of the day.

One day, the other lumberjack said, “We both come to work at 8:00 a.m. and work until 5:00 p.m. You disappear for an hour during the day, yet you always seem to be able to chop more wood than I do. What do you do during this hour that you disappear?”

And the first lumberjack said, “I go home, and I sharpen my axe.”

Sharpen your axe. You’ll be glad you did.

 

 

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An Appraiser’s Musings on Adaptive Reuse

How do we value the old made new? Adaptive reuse often walks a fine line between preservation and the bulldozer.

Once upon a time, a building was built for one noble purpose: the punishment of miscreants, the salvation of sinners, or the general improvement of society through the instruction and warehousing of its children. The rigorous application of steel bars and concrete walls, stained glass and wooden benches, chalkboards and rows of desk/chairs served us well for a time in penitence, worship, and education. Then, we, in our endless wisdom and grotesque irony, decided that such institutions were unnecessary — or at least too expensive to maintain. And so, the prisons were emptied, the schoolhouses abandoned, the churches left to the pigeons, and these fine, forsaken structures stood like forgotten tombstones of bygone purpose.

Until, of course, a developer caught wind of them, rubbed his hands together, and said, “Why, these would make lovely homes.”

Welcome to the age of adaptive reuse, where buildings once meant for industry, education, or incarceration are now retrofitted as a place to remand the great American dream — homeownership. It is a trend both noble and sometimes absurd, sustainable and occasionally grotesque, a testament to human ingenuity and a damning indictment of our inability to build anything new that isn’t a strip mall.

Take, for example, the old penitentiary. Once a haven for wayward souls with an overdeveloped enthusiasm for other people’s belongings, it has now been reborn as the Liberty Lorton Community in Virginia. Where once echoed the cries of the condemned, now rings the laughter of children. Where steel doors once clanged shut, now stands an open-concept kitchen with granite countertops. The transformation is complete — except, perhaps, for the occasional ghost of a long-departed inmate who rattles the pipes at night.

Not to be outdone, Melbourne’s circa-1851 Pentridge Prison has undergone a similar metamorphosis: a mixed-use development and “billion-dollar dining and entertainment precinct.”  The guard’s watchtower, from which many a convict was once observed plotting an escape, is now a charming architectural feature of someone’s living room. One wonders if the new occupants, sipping wine beneath the repurposed security bars, ever stop to consider the ironic poetry of their dwelling.

But why stop at prisons? Warehouses, schools, and even churches have become fair game in the adaptive reuse free-for-all. In Nashville, an old lumber mill has become a desirable community of single-family homes, its industrial bones repurposed into trendy loft-style abodes. Meanwhile, in Manhattan, the former Lincoln Correctional Facility, last known for housing petty criminals, is now the site of high-end real estate. One might call it a miracle of progress, or perhaps simply an elaborate joke played by time upon itself.

Valuing History

For the real estate appraiser, such transformations pose a conundrum: How does one assign value to a home where the kitchen was once a holding cell? How does the market account for a living room that once served as a place of prayer or punishment? The factors are many and bewildering.

Historical significance plays a role, of course. Buyers may clamor for a home steeped in history, so long as said history is charming rather than horrifying. A converted church, with its lofty ceilings and stained-glass windows, may fetch a premium. A converted slaughterhouse (Neuhoff Packing Plant, Nashville, TN), on the other hand, might require a more nuanced bit of marketing.

Then, there is the matter of location. The market cares little for poetry; a home is only as valuable as the market acceptance of the land beneath it. If an old schoolhouse sits in a prime neighborhood, it becomes a coveted relic of a more disciplined age. If it languishes in a forgotten corner of the world, it remains what it has always been — an abandoned schoolhouse, now with better insulation.

Economic viability must also be considered. The developer may dream of restoring history, but investors dream of profit. The costs of repurposing must not outweigh the potential gains, and so, adaptive reuse often walks a fine line between preservation and the bulldozer.

And finally, there are the ghosts — metaphorical and, in some cases, distressingly literal. Some buildings wear their past lightly; others carry it like a bad habit. Appraisers must weigh the unseen factors — buyer perception, cultural memory, and the unshakable feeling that the drain in one’s bathroom may have sluiced the fluids and viscera of cattle by the millions.

In the end, maybe adaptive reuse is often less about sustainability and more about the grand human refusal to let go of the past. We build prisons, fill them, empty them, and then move in ourselves. We abandon our schools and then call them home. We kneel in our churches, then convert them into luxury condos with vaulted ceilings and a faint whiff of incense. And through it all, the real estate market hums along, appraising, adjusting, and finding value in the most unexpected of places.

Perhaps, one day, this article will be rediscovered in the ruins of a former office building-turned-apartment-complex-turned-historical-landmark-turned-single-family home. And if so, dear reader of the distant future, let it be known: We did our best with what we had, and we had some odd ideas about home.

 

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