Starting September 2025, appraisals for most home sales will look very different. Here’s what that means for you.
For decades, home appraisals—the reports lenders rely on to determine your home’s value during a sale—have been completed using outdated forms designed in the typewriter era. But that’s about to change.
Over a 14-month period beginning in September 2025, lenders are phasing in a brand-new appraisal reporting format for all loans backed by Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs). This shift may sound technical, but as a seller, it’s important to understand how these changes could impact your sale—and how you can help ensure the process goes smoothly.
Why the Change?
The new format, called UAD 3.6, is designed to make appraisal reports clearer, more flexible, and easier to understand. It also allows appraisers to provide more detailed, specific information about your home—especially its condition, interior features, and any upgrades you’ve made.
What This Means for You
While the new format is mostly behind-the-scenes, there are a few ways it could affect you directly as a home seller:
1. More Detailed Appraisals
Appraisers will be required to include more information up front—especially about the interior of your home. Expect them to take more photos and ask more questions. You’ll need to be ready to explain upgrades, materials, finishes, and other improvements clearly and completely.
2. Less Room for Ambiguity
In the past, when appraisal forms didn’t have space for all the details, appraisers often used the dreaded phrase “See addendum”—meaning they had to attach extra documents. This sometimes made appraisals harder for lenders to interpret. The new format removes much of that guesswork, helping avoid delays due to incomplete or unclear reports.
3. Your Agent Is More Important Than Ever
While your real estate agent has always played a role in supporting your home’s valuation, their involvement is now even more critical. By providing accurate listing details, well-documented upgrades, and clear communication with the appraiser, your agent helps ensure your home is represented properly—helping to support the value you and your buyer agree on.
How You Can Prepare
To make sure the appraisal process doesn’t slow down your home sale or affect your price, here are a few steps you can take:
- Gather documentation for any improvements or renovations you’ve made (receipts, contractor invoices, before/after photos, permits, etc.).
- Clean and prepare your home for the appraiser’s visit—similar to how you would for a buyer showing.
- Share key details with your agent. Let them know anything unique or valuable about your property that might not be obvious at first glance.
- Have your agent compile an appraisal packet and meet the appraiser at the home. This insures the agent is available to answer any follow-up questions from the appraiser quickly. Click here to learn more about the power of an appraisal packet.
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