Appraisals Will Look Very Different in the Near Future—Are You Ready?- Shared Article

Over a 14-month period starting in September, lenders are phasing in new appraisal reporting for all GSE-conforming loans. As appraisers adjust to the new standards, agents will be key partners in ensuring the data is accurate and complete. Learn more— and watch the latest “Supporting Your Value” appraisal webinar.

Woman looking at appraisal webinar on laptop

For a long time, appraisals for mortgage transactions have been reported in the same way—via a form designed for a typewriter. The form varies depending on property type, but each variation includes boxes to check and blank spaces to fill out.

Although appraisers have long completed forms using web-based platforms, these forms—required for loans conforming to government sponsored enterprise standards—are rigid in structure. Often, there isn’t enough space for the appraiser to provide all relevant information. In that case, the reader sees the dreaded, “See addendum.” At that point, the reader of the report will have to read through sometimes pages of freeform text to find what they are looking for.

Beginning in September 2025, all of this will change. Read on to learn more about the transition, and how appraisers and agents can work together to get through the transition.

Why Appraisals Are Changing

The new appraisal reporting structure, known as the Uniform Appraisal Dataset (UAD 3.6), was spearheaded by Fannie Mae and Freddie Mac under the direction of the Federal Housing Finance Agency. The initiative has been underway since 2018.

UAD 3.6 aligns appraisal data with current mortgage industry data standards. In addition, the new appraisal report allows for dynamic reporting of appraisal data and makes the information easier for readers to consume while increasing discrete data points that the GSEs can use for internal analysis.

Under this new structure, appraisal reports, regardless of property type, will have a standard front page that includes:

Property summary with the opinion of market value
Photo of the subject property
Property description
Appraisal type

The report will also feature much more detail upfront on the interior of the property, allowing appraisers to add descriptive commentary to go along with photos. Condition and quality will be broken out by exterior and interior, with areas for description of interior details.

The dynamic form expands as needed to include additional information. For instance, if the appraiser indicates there’s an accessory dwelling unit, a section will appear for the appraiser to provide details. If there is no ADU, however, that section will not appear. (Here are some sample scenarios to show you what the new reports will look like. The Single Family Scenario 5 beginning on page 271 contains key characteristics that appear often in residential appraisals.)

Appraisers across the country are preparing for the change, but it won’t be easy. That’s why the GSEs have allowed a 14-month rollout period. During that time, all appraisal software used for mortgage transactions is changing to accommodate the new report. Appraisers must consider whether their existing provider or a competitor best meets their needs.

In addition, UAD 3.6 also has many new discrete datapoints that appraisers must relay—and this highlights the importance of the appraiser-agent relationship. Any relevant information agents can provide upfront will help appraisers complete the appraisal in a timely manner and prevent the need for a return trip the property or other delays.

Take a Deeper Dive into UAD 3.6

The UAD 3.6 will bring big change—from the datapoints appraisers are required to provide to the way appraisal results are reported. Appraisal forms for individual property types will be a thing of the past for most appraisals. Some lenders will begin using the new UAD as early as September 2025. Use of the form will be required for all Fannie Mae and Freddie Mac loans as of November 2026.

How can you get up to speed? As part of NAR’s “Supporting Your Value” webinar series, speakers from Fannie Mae and Freddie Mac recently gave NAR members a rundown of why the UAD is being updated, showed examples of data required and what the new reporting look will look like, and provided resources to help agents and appraisers prepare for the transition. Hundreds of NAR members registered and attended the no-cost session, and you can now watch a recording of the April 29 webinar, “The New Uniform Appraisal Dataset: What REALTORS® Need to Know.”

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