From Old School to Algorithm; The New Age of Appraisals

The October '25 sales meeting for the Lancaster 5 Offices of Berkshire Hathaway HomeServices Homesale Realty covering the following topics: 1. Making REALTORS® & Mortgage Lenders a Stronger Team (Homesale Mortgage), 2. Enhanced Title Policy (Homesale Settlement Services), 3. VIP Vendor - Linden Creek, 4. Administrative Staff Reminders - TSR Change Sheet, 5. Referral Royale Contest update, 6. Dolly's Tuesday Tune-up - Bullet Proofing Your Business for 2026, 7. October Town Hall Meeting with Rod Messick, 8. Office Open Forums with Rod Messick (Quarryville, Elizabethtown, and Mount Joy), 9. Virtual Expert Panel - Inside the Investor Mindset; Working with Investors, 10. Making Escrow Deposits Easy with HomesaleEscrow.com, 11. Fair Housing Training Requirement for NAR Members, 12. Seller's Love Letters, 13. From Old School to Algorithm; The New Age of Appraisals.

1. From Old School to Algorithm: The New Age of Appraisals Lancaster County, PA Centerville · Elizabethtown · Mount Joy · North Pointe · Quarryville October 2025 Sales Meeting

2. Dan Ranck 717-271-2400 NMLS # 140989 James Ream 717-286-9703 NMLS # 1598468 Keith Bushong 717-380-5406 NMLS # 535309 Making REALTORS® & Mortgage Lenders a Stronger Team 14 October 2025 2 We’re On the Same Side Buyers see us as one team United front reduces client stress Consistent messaging means no surprises Setting the Stage Early Encourage clients to get pre-approved Share Buyer’s timeline, budget, contingencies Avoid overpromising

3. Dan Ranck 717-271-2400 NMLS # 140989 James Ream 717-286-9703 NMLS # 1598468 Keith Bushong 717-380-5406 NMLS # 535309 Making REALTORS® & Mortgage Lenders a Stronger Team 14 October 2025 3 Communication is Everything Copy lender on key emails/texts When client shares concerns – contact lender Address issues before they become problems Contracts and Deadlines Set realistic timelines for financing/appraisal Quick updates keep underwriting on track Provide heads-up when submitting an offer late at night or over the weekend

4. Dan Ranck 717-271-2400 NMLS # 140989 James Ream 717-286-9703 NMLS # 1598468 Keith Bushong 717-380-5406 NMLS # 535309 Making REALTORS® & Mortgage Lenders a Stronger Team 14 October 2025 4 Educating the Buyer Together REALTOR® handles home – Lender handles money Reinforce who does what Sharing consistent advice exhibits professionalism Red Flags to Watch For Major purchases during the transaction Cash deposits without a paper trail Changes in job/income

5. Dan Ranck 717-271-2400 NMLS # 140989 James Ream 717-286-9703 NMLS # 1598468 Keith Bushong 717-380-5406 NMLS # 535309 Making REALTORS® & Mortgage Lenders a Stronger Team 14 October 2025 5 The BIG Picture Smooth transactions = Happy clients = Referrals Lender goal is to make REALTOR® look good in front of your client Working as a TEAM - - - EVERYONE wins

6. Title Insurance Success Story 14 October 2025 6 Dawn Watson [phone] Carli Egland [phone] Nancy Fertenbaugh [phone] Sarah Tompos [phone] Sheri Kelley [phone] THE NIGHTMARE BEGINS My husband and I bought our first home together in June 2019. Within a few months, we noticed water damage in our living room from a leaking shower in the master bedroom. The home was extensively renovated in 2015, including adding a master bathroom on the second floor. When we looked into what was happening, we learned that NONE OF THE WORK performed by the contractors in 2015 had been permitted. The seller's disclosure form had indicated that all work was permitted and inspected.

7. Title Insurance Success Story 14 October 2025 7 Dawn Watson [phone] Carli Egland [phone] Nancy Fertenbaugh [phone] Sarah Tompos [phone] Sheri Kelley [phone] THE NIGHTMARE CONTINUES The next few months were a nightmare. In late November, our borough's residential building inspector evaluated our home. He reported that the 2015 renovations had resulted in structural changes with apparent structural damage. We hired a local construction company in December 2019 to begin structural repairs to our home.

8. Title Insurance Success Story 14 October 2025 8 Dawn Watson [phone] Carli Egland [phone] Nancy Fertenbaugh [phone] Sarah Tompos [phone] Sheri Kelley [phone] A FORTUNATE RESOLUTION We estimated this work would cost approximately $30,000. We were overwhelmed by what was happening. Fortunately, we had purchased an Enhanced Title Policy when we closed on our home. At the time, we hadn't thought twice about it. To us, it was one more piece of paper to sign. Now, we are incredibly grateful to have our coverage. Our insurance covered $25,000 of code violations for the renovations to our home.

9. Title Insurance Success Story 14 October 2025 9 Dawn Watson [phone] Carli Egland [phone] Nancy Fertenbaugh [phone] Sarah Tompos [phone] Sheri Kelley [phone] THANKFUL FOR COVERAGE We were lucky to have such a wonderful real estate agent who had our best interests at heart, even advising us long after we closed on our home. We were fortunate that she had arranged an Enhanced Title Policy for us. We strongly recommend this practice to other homebuyers. We never could have guessed what was in store for us, and an Enhanced Title Policy made all the difference.

10. Enhanced Title Policy 14 October 2025 10 Dawn Watson [phone] Carli Egland [phone] Nancy Fertenbaugh [phone] Sarah Tompos [phone] Sheri Kelley [phone] Coverage Item Standard Policy Enhanced Policy Building Permit Violations No Yes Subdivision Coverage No Yes Violation of Restrictions on Your Land No Yes Enhanced Access Coverage No Yes Enhanced Encroachment Coverage No Yes Post Policy Forgery Protection No Yes Five-Year Inflation Protection No Yes (10%/year)

11. 14 October 2025 11

12. 14 October 2025 12

13. 14 October 2025 13

14. 14 October 2025 14

15. 14 October 2025 15

16. 14 October 2025 16

17. 14 October 2025 17

18. 14 October 2025 18

19. 14 October 2025 19

20. 14 October 2025 20

21. 14 October 2025 21

22. 14 October 2025 22

23. 14 October 2025 23

24. 14 October 2025 24

25. 14 October 2025 25

26. 14 October 2025 26

27. 14 October 2025 27

28. 14 October 2025 28

29. 14 October 2025 29

30. 14 October 2025 30

31. 14 October 2025 31

32. 14 October 2025 32

33. 14 October 2025 33

34. 14 October 2025 34

35. 14 October 2025 35

36. 14 October 2025 36

37. 14 October 2025 37

38. 14 October 2025 38

39. 14 October 2025 39

40. September 2025 Peak Performers 14 October 2025 40 North Pointe Craig Hartranft Team The Shreiner Group Lisa Naples Team Deryl Hurst Team Allison Deutsch Team Mark Rebert Team Mark Thudium Team Nancy Sarley Team Mark Will Team Tyler Stoltz Team Bob Rose Team Ken Kirchoff Centerville Karol Symanowicz Team Dawn Brill Cooper & Leah Landis Team Sandy Collins Team Ginger Volpone Team Andy Esbenshade Team Jacob Ziegler Team Jesse Hersh Team Destiny Rivera Allison Whittaker Jasmine Kraybill Lacey Swanson Amy Rivera Plaza Ryan Brenner Mike Lombardo Julie Peteritas Quarryville Eric Davis Katie Hall & Amanda Stevens Team Elizabethtown Lethea Myers & Denny Brandt Team David Pelletier Mount Joy Ferne Silberman Team Rob Rinkus

41. Administrative Staff Reminders 14 October 2025 41 TSR Change Sheet Use when making a change to sales price, names, settlement date, or commission REMEMBER to ‘Submit for Review’ DO NOT change original TSR Unshares original TSR with Accounting

42. 2026 Sales Convention 14 October 2025 42 Nashville, TN March 22-24, 2026 Contact Laura Chehi ([email protected]) Value Plan Registration: $600 (Register between 10/9 - 12/10) Social Registration: $485

43. Referral Royale Contest Update 14 October 2025 43 Monthly Contest to Win $50 How to earn entries: 1 Referral = 1 Entry Referral to a Homesale Agent in another office = TWO ENTRIES August Winner: Jeff Lefevre, Centerville Office Grand Prize - Catered Lunch at the end of the year for the office with the most CLOSED referrals Harrisburg North Pointe Camp Hill Current Standings

44. Dolly’s Tuesday Tune-Up 14 October 2025 44 1 st Tuesday of every month from 12:00-12:30 PM November 4 – Bullet Proofing Your Business for 2026 December 2 – Value Proposition; Are You Referrable?

45. October Town Hall Meeting 14 October 2025 45 JOIN MEETING

46. Office Open Forums with Rod Messick 14 October 2025 46 Quarryville Office Tuesday, October 14 1:00 – 2:00 PM Mount Joy Office Friday, October 17 2:30 – 3:30 PM Elizabethtown Office Friday, October 17 12:30 – 1:30 PM

47. Virtual Expert Panels 14 October 2025 47 * Two-part Series * Session 1: Thursday, October 16 th @ 1:00 PM Session 2: Thursday, November 13 th @ 1:00 PM

48. Make Escrow Deposits Easy 14 October 2025 48 We welcome digital deposit of escrow funds. Buyers can go to HomesaleEscrow.com to make their electronic escrow deposit. HomesaleEscrow.com Convenient for Buyers – Make their escrow deposit in minutes Efficient for Agents – Avoids checks being passed around Professional for Co-op Agents – Electronic option that ensures funds are deposited quickly and safely

49. REMINDER: Fair Housing Training Requirement 14 October 2025 49 Effective as of January 1, 2025 , REALTORS® are now required to complete Fair Housing / Anti-Bias Training upon becoming a member, and every 3 years thereafter . COURSE OPTIONS: Online Option Online Option Instructor Option

50. Seller’s Love Letters 14 October 2025 50 Letters to Sellers ( Love Letters ) can potentially violate Fair Housing Laws RACE COLOR RELIGION NATIONAL ORIGIN SEX DISABILITY FAMILIAL STATUS DO NOT accept or read - - - Agent and Seller DO NOT upload to your Loop AVOID any possible violation issues, please review with your manager

51. 14 October 2025 51 From Old School to Algorithm: The New Age of Appraisals

52. Which Lending Entities Does This Affect? 14 October 2025 52 YES YES YES UNKNOWN UNKNOWN NO

53. 14 October 2025 53 Uniform Appraisal Dataset – UAD 2.6 Six (6) Pages Last Revised in 2005 Uniform Appraisal Dataset – UAD 3.6 Twenty-two (22) Pages Introduced in 2024

54. What’s Happened to Homes Since 2005? 14 October 2025 54 Increased Size and Luxury of Master Suites Large walk-in closets or dressing rooms More Bathrooms and Higher Quality Emphasis on spa-like details Walk-in showers with multiple shower heads Larger, More Functional Kitchens More counter space Higher-end appliances Walk-in pantries

55. What’s Happened to Homes Since 2005? 14 October 2025 55 Shift Toward Outdoor Living and Entertaining Outdoor fireplaces/pits Multi-level, expansive decks/patios Cooking areas Flexible, Multi-use Spaces Home offices Gym and media rooms/spaces Smart Home Integrations Smart thermostats Home monitoring systems Internet connectivity

56. What’s Happened to Homes Since 2005? 14 October 2025 56 Energy Efficiency / Sustainable / Green Amenities Solar panels Better insulation Water conservation measures More Garages / Parking Spaces Increase in storage space Neighborhood, Community Amenities Walking trails Gathering spaces Internet connectivity

57. What’s Happened to Homes Since 2005? 14 October 2025 57 Interior Finish and Aesthetics More hardwood, engineered wood, or vinyl plank Less wall-to-wall carpeting Higher ceilings, bigger windows, more light Virtually none of these features were prevalent in 2005 and are difficult to quantify in the present appraisal form

58. Timeline for Implementation – Limited Production 14 October 2025 58

59. Timeline for Implementation – Broad Production 14 October 2025 59

60. Timeline for Implementation – Mandate 14 October 2025 60

61. Active Real Estate Appraisers (2018-2025) 14 October 2025 61 78,000 76,000 74,000 72,000 70,000 68,000 66,000 2018 2019 2020 2021 2022 2023 2024 2025 Distinct Active Appraisers (estimate) Year Decline of over 10,000 appraisers (15%) in 7 years

62. Changing Profession 14 October 2025 62 Causes of Decline Retirement High entry barrier Change in lending practices Tech/AVM impact Change in Qualifications Massive restructuring Oversight Use other real estate experience

63. What Kind of Data Will Now Be Required? 14 October 2025 63 Distance from front threshold to the ground Is broadband internet available? Is property subject to mineral rights ? Are there accessory dwelling units ? Energy efficiency and Green features of home Ratings for inside and outside of home Rate additions to homes Pictures of front, back, and sides of home Much more in-depth market data

64. Issues Going Forward? 14 October 2025 64 The days of the 10-minute appraisal walkthrough are over iPads and tablets will replace clipboards Very few appraisers are up to date with the new process: Software packages have not been released yet Appraisers are reading from manuals on how to do this Impact on Automated Valuation Models (AVMs) Data is being saved and read by a computer Who gets it? How is it going to be used? Privacy issues?

65. Issues Going Forward? 14 October 2025 65 There will be a mixed bag of forms starting in 2026 UAD 2.6 and UAD 3.6 will both be acceptable for a period of time, leading to some confusion Some appraisers MAY send ‘Information Gatherers’ to the property to collect data and take pictures (allowed) Obtain appraisers business card prior to entry Take Lock Box off the property after it goes pending Exodus of appraisers leaving the business

66. What Can Agents Do to Help? 14 October 2025 66 Appraisal appointments will be considerably longer because of data collection and required pictures – prepare the Seller Get data on Kitchens and Baths (i.e. year updated, contractor, costs) Fully updated (like NEW) Partially updated (some upgrades) Not updated (original or years old) Obtain make, model #, and age of all appliances Determine the age of the roof and collect invoices, receipts, and specifications Obtain copies of all permits and surveys

67. Impact on the Real Estate Industry? 14 October 2025 67 Appraisal fees will be set by the market It’s all about Supply and Demand Probably on the way UP MLSs will probably have to change how much data REALTORS® will be asked to obtain Seller’s Property Disclosure will probably need to be lengthened to ask for more data This is the biggest change ever for appraisers – delays are going to be inevitable It will be more important now than ever before to communicate with lenders regarding expectations and time frames

68. 14 October 2025 68 - Robin Sharma All change is hard at first, messy in the middle, and so beautiful at the end. Keep going.