Overview
From browsing listings and connecting with real estate agents to completing appraisals before closing, nearly every step of the homebuying journey is becoming increasingly digital.
Digital homebuying is entering a new phase with the upcoming release of the updated Uniform Appraisal Dataset, set for the initial launch later this year and full implementation by the end of 2026. But how will this shift impact older generations compared to younger, first-time buyers? And with these changes accelerating, is the traditional homebuying experience on the verge of disappearing altogether?
Homebuying is undergoing a significant transformation. In the past, it meant weekend open houses and meeting agents in person. Today, it’s virtual tours and online closings.
Appraisals are also shifting. Fannie Mae and Freddie Mac plan to introduce a new appraisal format, the Uniform Appraisal Dataset (UAD) 3.6, by the end of 2026. This updated standard provides more precise, detailed, and transparent valuation for all parties.
While younger generations are leading the charge in embracing these digital tools, it raises an important question: how will older generations stay connected to a rapidly changing housing market?
From curb appeal to click appeal
As Gen Z begins aging into homeownership, they're reshaping the process.
Portals that personalize listings, online calculators for monthly mortgage payments, instant analysis of loan eligibility, and chat-based assistants are beginning to streamline one of the most significant purchases of someone’s life into a process that can be done from a single screen in one location.
As homebuying speeds up, Cotality found in its From House to Home survey that buyers in all generations want both certainty and convenience. Over 60% of respondents look to professionals to guide them alongside the use of digital tools.
But there is a generational divide.
Cotality data found that 41% of baby boomers still prefer working only with a person to find a home; 47% look to human guidance when it comes to getting a mortgage. Younger generations are melding technology with guidance. Just over a third of Millennials rely exclusively on human guidance to find a property, while 35% of Gen Z buyers will look only to a person when finding a mortgage. In most other aspects of buying a home, technology is playing a pronounced role.
The industry professionals who will stand out long-term are the ones who are infusing technology into their approach.
“This is a new, scary process that some real estate agents don’t want to learn, but technology and AI reshape the way that agents can work and run their own business,” Savanna Pearson from Smith & Associates Real Estate told Cotality.
Those who do embrace this change will only widen the pool of buyers they serve.
Why are today’s buyers feeling more discomfort in the homebuying process?
Cotality’s Allie Barefoot talks with Head of Research & Development, Anand Srinivasan.
UAD 3.6 brings appraisals into the digital age
The homebuying process is also changing from the inside. Fannie Mae's and Freddie Mac's Uniform Appraisal Dataset (UAD) 3.6 updates will expedite appraisals by allowing, in many cases, inspections with automated tools and data to be completed by valuation experts.
The standardization of data fields will decrease subjectivity in home valuation and allow for more accurate collateral risk assessment. This isn't about simply collecting information; it's about capturing a more comprehensive and verifiable digital record of a property. While UAD 3.6 supports alternative methods like virtual or third-party data collection, the critical takeaway is the increased data requirement.
In many cases the modernization of this process will significantly reduce requests for revisions and corrections, which allows lenders to reduce overhead expenses by bypassing inspections and utilizing standardized data to determine home values. This change can also help homebuyers move faster and save money.
Younger buyers are well suited for this shift. Cotality's survey found that one third of Gen Z shoppers expect to find a home quickly.
Accelerating appraisals through waivers is only one result of this shift. “I believe one goal of the government-sponsored entities (GSEs) is to eliminate the need for appraisers to rely on narrative descriptions, since those tend to be inconsistent.” Cotality’s Chief Valuation Officer Shawn Telford explains.
Consolidating home value determinations into one form and modernizing data will help make appraisals more accessible. Although appraisers themselves will face a learning curve with new systems and software updates, collecting uniform data that integrates with compatible technologies makes it reusable—a boon for all parties when it comes to quickly understanding neighborhood values and tracking equity over time.
However, much like their generational peers who seek human guidance alongside technological advancements, homebuyers and lenders still need appraisers to use their experience to explain the insights that computers can’t. UAD 3.6 helps all stakeholders by making data clearer, handling complex properties better, and working smoothly with modern digital tools.
The generational divide in a digital homebuying world
Digitizing the homebuying process brings more flexibility, wider access, and the convenience of making informed choices. But the impact of this modernization varies with age.
Older generations may be more accustomed to traditional routines and less familiar with newer technologies. However, while younger shoppers still value human guidance, they are pushing for the property industry to adopt the same tech-powered speed, ease of use, and convenience that are standard in so many areas of life.
Adapting to modern tools can help all homebuyers stay connected and efficient in today's fast-paced world. And it’s up to industry professionals to guide them.
