Beginning November 2, 2026, Fannie Mae and Freddie Mac will require a new appraisal reporting standard known as UAD 3.6 for all new appraisal reports submitted through the Uniform Collateral Data Portal. The familiar appraisal forms used for decades are being replaced by a single, flexible Uniform Residential Appraisal Report. The new report adjusts to the property being evaluated, whether it is a single-family home, condominium, two-to-four-unit property, or a home with an accessory dwelling unit or other unusual features.
What does this mean for Sellers?
Appraisers may collect and document more structured information about the home, including its condition, construction quality, room configuration, updates, renovations, accessory structures, views, defects, and other features that may affect value or marketability.
If you plan to sell, preparation matters:
• Make every part of the property accessible, including bedrooms, bathrooms, garages, storage areas, and accessory spaces.
• Prepare a list of major improvements and their approximate completion dates.
• Identify discrepancies between the property and public records before the appraisal.
• Tell your real estate professional about additions, conversions, solar systems, detached structures, or other unusual features.
What does this mean for Buyers?
The appraisal will still primarily help the lender determine whether the property provides adequate collateral for the loan. It is not a home inspection, and an appraisal supporting the purchase price does not mean the home is free from defects.
Buyers should:
• Ask whether the appraisal will be completed under UAD 3.6.
• Understand the appraisal contingency in the purchase contract.
• Review the completed appraisal for factual errors.
• Keep financing documents moving promptly.
• Allow enough time for appraisal review, questions, or corrections.
Could the change delay closings?
Possibly, especially during the initial transition. Appraisers, lenders, appraisal management companies, and software providers are all adapting to the new system. Delays are not inevitable, but transactions scheduled near the November 2 deadline deserve additional attention.
One important clarification: these requirements do not apply to every appraisal or every real estate transaction. They primarily affect appraisal reports submitted for loans involving Fannie Mae and Freddie Mac. Cash transactions and other mortgage programs may follow different requirements.
The appraisal should never be the first time important facts about a property come to light. Whether you are buying or selling, preparation, accurate information, and early communication remain the best ways to prevent surprises before closing.
Robert Foreman
Arizona Real Estate Broker and Data Consultant
LivingInPhoenix.net
robert@nhancedata.com
480-415-0783