Home Appraisals Are Changing in 2026: What Buyers & Sellers Need to Know

Home Appraisals Are Changing: What Buyers & Sellers Need to Know

Thank you to Brian Kesler of Direct Mortgage Loans for this guest post.

If you plan to buy or sell a home, there is a big change coming to home appraisals.

Starting November 2, 2026, Fannie Mae and Freddie Mac will require a new type of appraisal report called UAD 3.6.

Don’t worry — you don’t need to understand all the technical details. Here are the important things to know.

What Is UAD 3.6?

When you buy or sell a home, an appraiser may visit the property to help determine what it is worth.

With UAD 3.6, appraisers will collect and report more detailed information about the home.

This could include things like:

The size and layout of the home
Bedrooms and bathrooms
Finished basements
Garages and other buildings
The condition of the home
Renovations and improvements
Extra living spaces, such as an ADU

The goal is simple: Give lenders better and more consistent information about each home.

What Does This Mean for Buyers?

At first, appraisals may take a little longer as everyone gets used to the new system.

Some appraisals may also cost more, especially for unusual homes, multi-family properties or homes with extra living spaces.

If you are buying a home, it will be important to start the loan and appraisal process as early as possible.

A few extra days could make a difference when you are trying to close on time.

What Does This Mean for Sellers?

Good information about your home will be more important than ever.

Work with your real estate agent to make sure your home’s information is correct.

If you have made improvements, write them down.

Instead of saying:

“The home was recently updated.”

Be specific, e.g.:

Kitchen remodeled — 2024
New roof — 2022
New HVAC — 2025

If you have floor plans, permits, receipts or other information about major improvements, keep those handy too.

The easier it is for the appraiser to understand your home, the better.

What If the Appraisal Is Too Low?

Sometimes an appraisal comes in lower than the price the buyer and seller agreed on.

If that happens, your real estate agent and lender can review the report for mistakes.

Did the appraiser use the wrong square footage?

Did they miss an important feature?

Was the condition of the home described incorrectly?

Are there better nearby home sales that should be considered?

Facts matter. Good records can help if something in the appraisal needs another look.

The Bottom Line

UAD 3.6 is a big change for the appraisal industry, but buyers and sellers don’t need to become appraisal experts.

The most important things are simple:

Start early.

Make sure the information about the home is correct.

Keep good records of improvements.

Work with a real estate agent and lender who understand the new process.

Better information can help create a smoother path to closing.

Thank you again to Brian Kesler of Direct Mortgage Loans for this post. Brian is a local Baltimore loan officer who is very well versed in the upcoming changes to home appraisals, and has a long history of successful closings on Baltimore home loans.