What Homeowners Need to Know About New Appraisal Changes
If you're planning to buy, sell, or refinance a home in the coming years, there's an important change happening behind the scenes that could impact your transaction.
Beginning November 2, 2026, mortgage appraisals submitted to Fannie Mae and Freddie Mac will follow a new reporting standard known as UAD 3.6 (Uniform Appraisal Dataset 3.6). The update introduces a redesigned Uniform Residential Appraisal Report (URAR) and requires appraisers to collect and report significantly more detailed, structured property data than ever before.
The information gathered during the appraisal process can play an important role in how smoothly a real estate transaction moves through the lending process. Homeowners who are organized and prepared can help reduce potential delays, support an accurate valuation, and make the experience more efficient for everyone involved.
What Is Changing?
For years, appraisers have relied heavily on narrative comments and written descriptions when documenting a home's characteristics, condition, and improvements.
Under UAD 3.6, appraisers will continue to evaluate homes much the same way, but they will now be required to report more standardized information in specific data fields. This includes detailed reporting on:
- Property features and amenities
- Above-grade and below-grade square footage
- Home condition and quality ratings
- Renovations and replacement items
- Construction details
- Lot characteristics and location influences
- Accessory structures and special features
The goal is to create greater consistency, accuracy, and transparency throughout the appraisal process while providing lenders and investors with more reliable property data.
Why Should Homeowners Care?
Although UAD 3.6 is primarily an appraisal industry update, homeowners may notice its effects during a sale, refinance, or purchase transaction.
When property details are incomplete, unclear, or difficult to verify, appraisers may need additional documentation or spend extra time researching the home. This can lead to:
- Follow-up questions
- Additional requests for information
- Delays in appraisal completion
- Slower underwriting timelines
According to appraisal industry guidance, providing accurate property details upfront can help reduce research delays and revision requests while improving appraisal efficiency.
Simply put, better information helps create smoother transactions.
What Sellers Should Do Now
If you expect to sell your home within the next few years, now is an excellent time to start organizing information about your property.
Keep Track of Major Improvements
One of the most valuable things homeowners can provide is a history of major updates and renovations. Create a list of improvements you've completed, such as:
- Roof replacement
- HVAC system replacement
- Water heater replacement
- Kitchen remodels
- Bathroom renovations
- Window replacements
- Flooring updates
- Electrical or plumbing upgrades
- Deck or patio additions
- Energy-efficient improvements
Whenever possible, include:
- Year completed
- Contractor information
- Permit documentation
- Receipts or invoices
Appraisers increasingly rely on this information when evaluating a home's condition and quality, especially when improvements may not be obvious from public records alone.
Understand Your Home's Square Footage
Square footage reporting is receiving increased attention under the new standards. If you've finished a basement, converted a garage, enclosed a porch, or added living space, it's important to understand:
- What qualifies as above-grade living area
- What qualifies as below-grade finished space
- Whether additions were completed with proper permits
- How finished areas are counted in total living space
The updated reporting standards place greater emphasis on distinguishing between different types of finished and unfinished spaces. Having accurate information available can help avoid confusion later in the process.
Don't Forget Special Property Features
Many homeowners have features that may not appear clearly in public records but can contribute to the overall understanding of the property. Examples include:
- Solar panels
- Swimming pools
- Detached workshops
- Accessory dwelling units (ADUs)
- Outbuildings and sheds
- EV charging stations
- Fenced yards
- Outdoor kitchens
- Large decks and patios
Providing details about these features can help ensure they are accurately documented during the appraisal process.
Organize Property Documents
Consider creating a dedicated folder, either digital or physical, that contains:
- Improvement receipts
- Permit records
- Survey documents
- Home warranties
- Contractor invoices
- HOA documents
- Property plans or floor plans
Having these records readily available can save time and make it easier to answer questions during a transaction.
What Homebuyers Should Know
Buyers do not need to become appraisal experts, but understanding the basics can help reduce stress during the mortgage process. The appraisal serves an important purpose: it helps determine whether the property's value supports the purchase price and loan amount. Under UAD 3.6, appraisers may spend additional time verifying:
- Property characteristics
- Home condition
- Renovations and updates
- Square footage measurements
- Comparable sales data
- Site and location features
This additional level of detail is intended to improve accuracy and consistency, not to make buying a home more difficult. For buyers, the biggest takeaway is that appraisals may become more data-driven and supported by better property information than in the past.
How Accurate Property Information Helps Everyone
Complete and accurate property information benefits every party involved in a transaction. When listing and property details are readily available:
- Appraisers can verify information more efficiently.
- Real estate agents spend less time responding to follow-up questions.
- Lenders can move loans through underwriting more smoothly.
- Buyers and sellers are less likely to encounter surprises late in the process.
Industry guidance surrounding UAD 3.6 encourages accurate documentation because it helps reduce research delays and supports more efficient appraisal reviews.
A Simple Preparation Checklist
- Save receipts for home improvements.
- Maintain a running list of upgrades and repairs.
- Store copies of permits and contractor invoices.
- Verify the details of finished basements, additions, or converted spaces.
- Keep records of special property features and amenities.
- Share improvement information with your real estate agent when preparing to sell.
- Organize key property documents in a dedicated folder.
The Bottom Line
While UAD 3.6 may sound like an appraisal industry update that only affects lenders and appraisers, the changes ultimately benefit homeowners by promoting greater accuracy and transparency throughout the homebuying, refinancing, and selling process.
The homeowners who will be best prepared are those who can clearly document their property's features, improvements, and condition. By taking a little time now to organize your home's information, you can help create a smoother experience when it's time to refinance, sell, or purchase your next home.
As the new standards take effect in November 2026, good recordkeeping may become one of the simplest ways to keep your future transaction moving forward with fewer questions, fewer delays, and greater confidence.
This is for informational purposes only. TowneBank Mortgage is a mortgage lender and does not provide financial, legal, or tax advice, nor credit repair services.