The Bottom Line
Beginning November 2, 2026, Fannie Mae and Freddie Mac will require a completely redesigned appraisal reporting format, known as UAD 3.6, for new appraisal submissions on eligible conventional loans. While appraisers will continue using the same professional judgment and recognized valuation methods, the way they collect, organize, and report property information is changing dramatically.
For Realtors, this means property details that may have once been buried in narrative comments or never documented at all will now be captured in a much more structured and consistent way. For buyers and sellers, it means accurate property information and good documentation will become even more important.
The good news?
This isn’t something to fear.
In many ways, the redesigned report should create greater consistency and reduce misunderstandings. But it also raises the bar for how thoroughly a property is documented before the appraisal is completed.
The agents who understand these changes now will be better prepared to keep transactions moving smoothly.
Table of Contents
Key Takeaways
- The appraisal process is not being replaced. Appraisers will still determine market value using established appraisal principles. UAD 3.6 changes how information is reported, not how value is calculated.
- The new report is dynamic. Instead of dozens of different appraisal forms, one flexible report adapts to the property type and assignment.
- Property documentation becomes much more detailed. The redesigned report captures significantly more structured information about the home, site, improvements, condition, and market.
- November 2, 2026 is the key transition date. For applicable conventional loans, new submissions to the Uniform Collateral Data Portal (UCDP) must use UAD 3.6 beginning on that date. Existing legacy reports already in the pipeline follow different transition rules.
- Preparation matters more than ever. Accurate square footage, improvement history, permits, ADU information, and supporting documentation can help reduce delays and unnecessary revision requests.
Watch: Big Appraisal Changes Are Coming November 2026
Prefer the quick version? In this 60 second video, I break down some of the biggest appraisal changes Realtors need to know before November.
Why Is This Happening?
Most people think of an appraisal as a paper form. In reality, the appraisal is data.
For years, appraisers have used familiar forms like the Uniform Residential Appraisal Report (Form 1004), condominium reports, manufactured housing reports, and several others. Those forms served the industry well, but they were largely designed around fixed paper layouts created decades ago.
As residential properties became more diverse and technology advanced, those forms became increasingly difficult to adapt.
Many important property characteristics ended up buried inside long narrative comment sections. Two appraisers could describe the same feature using completely different language, making consistency and quality review much more difficult.
UAD 3.6 changes that.
Instead of relying on static forms with free-form narrative, Fannie Mae and Freddie Mac have redesigned the appraisal reporting process around a structured dataset aligned with the latest MISMO data standards. The result is a single dynamic Uniform Residential Appraisal Report (URAR) that expands or contracts based on the property being appraised.
That means the report can accommodate everything from a straightforward suburban home in Fairfax to a property with accessory dwelling units in Arlington, complex site characteristics in Leesburg, manufactured housing features in Maryland, or multiple improvements, without forcing appraisers into separate legacy forms.
What Isn’t Changing?
Whenever the mortgage industry announces a major update, rumors spread quickly.
To be clear, the redesigned report does not replace professional appraisal judgment.
Appraisers will still:
- Analyze the local real estate market
- Select appropriate comparable sales
- Make market-supported adjustments
- Reconcile the available evidence
- Develop an opinion of market value
Those core responsibilities remain exactly where they belong, with the appraiser.
It’s also important to remember that an appraisal and a home inspection serve very different purposes. An appraisal is primarily focused on determining and supporting the property’s market value, while a home inspection is focused on evaluating the home’s physical condition. If you’re not sure where one ends and the other begins, I break down the differences in my guide to Home Inspection vs. Appraisal.
UAD 3.6 doesn’t change those fundamental roles. Instead, it changes how the supporting information in the appraisal is documented and communicated.
Think of it this way.
Imagine two experienced Realtors describing the same kitchen renovation.
One writes:
“Kitchen updated.”
The other writes:
“Complete kitchen renovation completed in 2023 including custom cabinetry, quartz countertops, new electrical, plumbing fixtures, luxury appliances, recessed lighting, and engineered hardwood flooring.”
Both descriptions refer to the same improvement.
One simply tells a much clearer story.
The redesigned appraisal report follows that same philosophy by organizing property information into consistent data fields rather than relying heavily on narrative comments.
The Details That Surprise Most Realtors
This is usually where Realtors stop me during presentations.
The redesigned report includes some surprisingly specific property information.
For example, depending on the assignment, the report may document items such as:
- Approximate front-door elevation above surrounding grade
- Estimated roof age
- Ceiling heights and ceiling types
- Kitchen and bathroom update history
- Renewable energy systems
- Broadband availability
- Water access characteristics
- Accessory dwelling units (ADUs)
- Outbuildings
- Vehicle storage
- Below-grade living areas
- Property deficiencies requiring repair
Some of these fields have always influenced value when appropriate.
The difference is that they’re now being captured in a much more consistent, structured format rather than relying primarily on narrative explanation. The GSEs have also published new job aids to help appraisers consistently report these property characteristics under the redesigned URAR.
For listing agents, that means details you already know about the property may become more valuable if they’re organized and documented before the appraisal is ordered.
Why November 2 Is Important, but Not the Whole Story
If there’s one date you’ve probably heard associated with UAD 3.6, it’s November 2, 2026.
That’s the day new appraisal submissions for eligible Fannie Mae and Freddie Mac loans must begin using the redesigned appraisal report.
But there’s an important nuance that many Realtors and even some lenders have misunderstood.
The transition is not based on:
- The date the sales contract is signed
- The appraisal inspection date
- The loan application date
- The closing date
Instead, the transition is based on the appraisal’s initial submission to the Uniform Collateral Data Portal (UCDP). That distinction matters because loans already moving through the pipeline may continue under different transition rules depending on when the appraisal was first submitted. The GSEs have also provided a temporary revision period for certain legacy reports already in process.
For Realtors, the takeaway is simple.
If you’re writing contracts in late October or working with an unusual property that could require additional documentation, don’t assume the appraisal timeline will behave exactly as it has in the past.
This is one more reason to involve your lender early rather than waiting until the appraisal has already been ordered.
Why Photos Suddenly Matter Even More for Appraisals
“A picture is worth a thousand words.”
With UAD 3.6, that statement becomes even more accurate.
Historically, appraisers have always included photographs.
What’s changing is how those photographs support the structured data inside the report.
Instead of simply documenting that the appraiser visited the property, the photos increasingly serve as evidence supporting specific observations about condition, quality, improvements, deficiencies, site characteristics, and special property features.
Depending on the assignment, the report may include photographs of:
- The front and rear of the home
- The street scene
- Kitchens
- Bathrooms
- Primary living areas
- Below-grade finished spaces
- Renovations or updates
- Deferred maintenance
- Accessory dwelling units
- Outbuildings
- Water features
- Site characteristics that influence value
That doesn’t mean every appraisal requires every possible photograph.
The required images vary depending on the property and the assignment.
But it does mean photographs become much more closely tied to the story the appraisal is telling. The GSEs have published dedicated photo guidance to promote greater consistency in documenting these features.
Square Footage Is Becoming More Transparent
“Will this change how homes are measured?”
Not exactly.
The measurement standards themselves aren’t being reinvented because of UAD 3.6.
What is changing is how different types of space are identified and reported.
Instead of relying primarily on one gross living area figure, the redesigned report provides much more detailed information about how different spaces contribute to the property.
For example, the report distinguishes between:
- Finished above-grade living area
- Above-grade space that doesn’t meet the applicable standard
- Finished below-grade area
- Unfinished below-grade area
- Accessory dwelling units
- Other detached improvements
That creates a clearer picture of what actually contributes to value.
For listing agents, this reinforces something I’ve recommended for years:
Know where your square footage came from.
If the MLS, tax records, builder plans, and previous appraisal all report different numbers, it’s much better to identify those differences before a buyer is under contract than during the appraisal review.
Floor plans, permits, and documentation of additions or finished spaces become increasingly valuable supporting information.
Accessory Dwelling Units Are Receiving Much More Attention
Accessory dwelling units (ADUs) have become increasingly common across Northern Virginia and many other markets.
Whether it’s a basement apartment, detached guest house, carriage house, or converted garage, these properties often generate some of the most complicated appraisal questions.
The redesigned report captures much more detailed information about ADUs, including items such as:
- Size
- Room count
- Condition
- Utilities
- Access
- Rental characteristics
- Relationship to the primary dwelling
This additional reporting should help create greater consistency when evaluating these properties.
It also happens to coincide with broader Fannie Mae policy updates that expand financing opportunities for certain properties with multiple ADUs when submitted using UAD 3.6. Those eligibility updates are separate from the reporting format itself, but together they reflect the industry’s recognition that accessory dwelling units have become a much more common part of today’s housing market.
For Realtors, the lesson is straightforward.
If a property includes an ADU, don’t simply mention it in passing.
Provide as much accurate information as possible:
- Is it permitted?
- Is it separately metered?
- Is it currently rented?
- Does it have its own entrance?
- How large is it?
- When was it built?
Those details help tell the property’s story long before value is ever discussed.
Comparable Sales Become Easier to Understand
One of my favorite improvements in the redesigned report may actually be one of the least publicized.
Historically, appraisers have explained comparable sales primarily through narrative commentary.
The redesigned report adds a Comparable Weight field that identifies how much influence each comparable sale had during the reconciliation process.
That doesn’t mean every comparable contributes equally.
Nor should it.
Sometimes the closest sale isn’t the best sale.
Sometimes a property slightly farther away provides a much better indication of market behavior because it’s more similar in age, quality, condition, lot characteristics, or design.
The redesigned report makes that thought process more transparent.
What This Could Mean for Appraisal Rebuttals
This added transparency could become especially meaningful when an appraisal comes in lower than expected.
One of the challenges with a Reconsideration of Value, or appraisal rebuttal, has always been understanding why the appraiser relied more heavily on certain comparable sales than others.
The redesigned report should give lenders, Realtors, and borrowers more insight into that decision-making process.
If a comparable that appears highly relevant was available but received less weight, or another sale received significant weight despite meaningful differences from the subject property, there may be a clearer starting point for asking questions and providing additional market data.
That does not mean challenging an appraisal will necessarily become easier or that an appraiser will be required to change the value. But it could make the rebuttal process more informed and specific.
Instead of simply arguing that another sale should have been used, Realtors may be better positioned to focus on why a particular comparable deserves greater consideration based on location, condition, quality, renovations, lot characteristics, or other market-supported factors.
What Realtors Should Do Before Listing a Property
One of the biggest themes running throughout UAD 3.6 is preparation.
The better organized the property’s information is before the appraisal begins, the smoother the process often becomes.
Before listing a property, consider assembling:
Property Documentation
- Floor plans
- Survey, if available
- Permits
- Certificate of occupancy for additions
- Improvement timeline
Recent Improvements
Document:
- Roof replacement
- HVAC replacement
- Kitchen remodels
- Bathroom remodels
- Flooring
- Windows
- Solar installation
- Major mechanical updates
Whenever possible, include dates.
“Updated kitchen” is helpful.
“Complete kitchen renovation completed in 2023” is much better.
Special Property Features
Don’t overlook items such as:
- ADUs
- Detached garages
- Barns
- Workshops
- Waterfront access
- Private roads
- Shared driveways
- Renewable energy systems
Many of these features have always mattered. They’re simply becoming much easier to document consistently under the redesigned report.
What Buyer’s Agents Should Do Differently with UAD 3.6
Buyer’s agents can help avoid surprises by identifying unusual properties early.
Examples include:
- Garage conversions
- Basement apartments
- Manufactured homes
- Waterfront properties
- Large acreage
- Historic homes
- Condominiums with complex ownership structures
- Mixed-use properties
These transactions have always required additional attention, but UAD 3.6 will now require more thorough documentation.
The earlier your lender understands the property’s characteristics, the more smoothly the financing process is likely to go.
Of course, not every conventional loan will require a traditional appraisal. Depending on the property and loan scenario, some buyers may qualify for an appraisal waiver, potentially saving both time and money during the homebuying process. I explain how these work and who may qualify in my guide, What Is an Appraisal Waiver and How Can It Save You Money?
Common Myths About UAD 3.6
Whenever the mortgage industry introduces a significant change, misinformation tends to spread almost as quickly as the official announcements.
Here are some of the biggest misconceptions I’ve been hearing.
Myth #1: Appraisers Are Changing How They Determine Value
False.
The principles of appraisal haven’t changed.
Appraisers will continue to analyze market data, select appropriate comparable sales, make market-supported adjustments, and develop an independent opinion of value.
UAD 3.6 changes how that information is reported, not the fundamental methodology used to develop the appraisal.
Myth #2: Every Homeowner Needs to Worry About New Requirements
Not necessarily.
Most buyers and sellers won’t notice dramatic differences during the transaction.
They won’t fill out new forms or be expected to understand appraisal coding.
What they may notice is that their Realtor or lender asks a few more questions about the property before the appraisal is ordered.
That’s actually a good thing.
Having better information earlier often helps prevent delays later.
Myth #3: Every Appraisal Will Take Longer
Not necessarily.
During any major industry transition, there can be a learning curve.
However, the long-term goal of UAD 3.6 is greater consistency, not more paperwork.
As appraisers, lenders, appraisal management companies, and underwriters become more familiar with the redesigned report, many routine reviews may actually become more efficient because property information is organized in a more standardized format rather than buried in narrative comments.
Like most technology improvements, there may be some adjustment in the beginning before everyone becomes comfortable with the new workflow.
Myth #4: Realtors Need to Become Appraisal Experts
Your role hasn’t changed.
Your responsibility is still to represent your client, market the property effectively, negotiate the contract, and help keep the transaction moving.
What has changed is the value of accurate information.
Knowing when the roof was replaced, whether permits were obtained, how an ADU is configured, or where the published square footage came from can make everyone’s job easier.
You don’t need to become an appraiser, but you likely will need to become an even better source of reliable property information.
Why I Actually Think This Is a Positive Change
I’ll admit it.
Whenever our industry announces a major update, my first reaction is usually the same as everyone else’s:
“How much more complicated is this going to make things?”
But after spending time studying the redesigned report, reading the implementation guidance, attending training sessions, and discussing it with appraisers and industry professionals, I’ve come to a different conclusion.
I actually think this is a positive step because better information usually leads to better communication.
For years, many appraisal questions have come down to missing or inconsistent information.
Was that basement finished legally?
When was the roof replaced?
Is that detached structure an accessory dwelling unit or simply storage?
Was the kitchen remodeled five years ago or twenty?
Sometimes the answers existed.
They just weren’t documented very well.
The redesigned report encourages more consistent reporting of those details.
And anything that helps everyone involved understand the property more clearly, from the appraiser to the underwriter to the Realtor, is generally a step in the right direction.
Frequently Asked Questions About UAD 3.6
Will My Home Appraise for Less Under UAD 3.6?
Not simply because the reporting format changed.
The redesigned report doesn’t instruct appraisers to value homes differently.
Market value is still based on the property’s characteristics, comparable sales, current market conditions, and professional analysis.
Does UAD 3.6 Affect FHA or VA Loans?
Not automatically.
This article focuses on the redesigned appraisal reporting requirements for Fannie Mae and Freddie Mac conventional loans.
Other agencies continue to establish their own implementation timelines and requirements. If you’re financing with FHA, VA, or another loan program, your lender can explain which appraisal requirements apply to your specific transaction.
Should Sellers Prepare More Information Before Listing?
Yes.
While every property is different, having documentation ready for major improvements, additions, permits, accessory dwelling units, solar systems, and other unique features can help reduce questions later in the transaction.
Good documentation has always been valuable.
The redesigned report simply makes it more useful.
Are Realtors Expected to Fill Out the New Appraisal Report?
No.
The report is completed by the licensed appraiser.
However, Realtors often have valuable information about the property that can help the appraiser understand improvements, additions, or other unique characteristics.
Providing accurate information is helpful.
Does UAD 3.6 Change Appraiser Independence?
No.
The same federal independence requirements remain in place.
Realtors should continue providing factual property information while allowing the appraiser to independently develop and support their opinion of value.
Final Thoughts
The biggest appraisal reporting change in years is almost here.
At first glance, it’s easy to assume this is simply another new government form.
It isn’t.
It’s a modernization of how residential property information is collected, organized, and communicated throughout the mortgage process.
For buyers, the experience probably won’t feel dramatically different.
For sellers, it means accurate documentation of improvements becomes even more valuable.
For Realtors, it’s another reminder that great transactions start long before the appraisal inspection is scheduled.
The more complete the property’s story is from the beginning, the fewer surprises tend to appear later.
As with many changes in our industry, the professionals who understand the update first are usually the ones who help their clients navigate it most confidently.
That’s why now is the perfect time to become familiar with UAD 3.6, before it becomes part of your next transaction.
Need Help Navigating the New Appraisal Requirements?
Whether you’re preparing to list a home, writing an offer, or working with a property that has unique characteristics, I’m happy to help you evaluate the financing considerations before the appraisal is ordered.
Sometimes a short conversation early in the process can prevent unnecessary questions, delays, or surprises later.
About the Author
John Pyne is EVP and Regional Manager at Atlantic Bay Mortgage Group and leads The Pyne Team. With more than 20 years of mortgage banking experience and over $1 billion in funded loans, John helps homebuyers and Realtors navigate everything from straightforward purchases to complex financing scenarios.
Based in Virginia and serving clients throughout Northern Virginia, Washington, DC, Maryland, and beyond, John specializes in helping buyers understand their financing options and helping real estate professionals identify potential lending challenges before they become transaction problems.