If you're planning to buy or sell a home in the next couple of years, there's a major change coming that could affect your transaction: the way appraisals are done is getting a complete overhaul.

 

Starting in September 2025, a new digital appraisal system—called UAD 3.6—will begin rolling out for all loans backed by Fannie Mae and Freddie Mac. By November 2026, it will be the new standard for most home purchases using conventional financing. Here's what you need to know, and why it matters to you.

 

What’s Changing?

For decades, appraisals have been done using forms that were literally designed for typewriters. They’ve been clunky, hard to read, and not always helpful in showing a home's true value. That’s about to change.

With UAD 3.6, appraisals will be:

  • Digital-first and dynamic, meaning they can expand to fit the specifics of each property
  • More visual, with photos and detailed interior descriptions upfront
  • Clearer, with better-organized information so everyone—lender, buyer, seller—can understand the appraiser’s findings more easily

This isn’t just a facelift—it’s a whole new structure that makes the appraisal process more transparent and modern.

 

Why It Matters to Buyers

If you’re buying a home, the appraisal can make or break your deal—especially if you're financing your purchase. The new format means:

  • Faster, clearer results – Less confusion and fewer delays caused by unclear or incomplete appraisals
  • More accurate assessments – Dynamic forms allow appraisers to provide more detailed, property-specific information
  • Better communication – You'll have an easier time understanding how the appraiser arrived at the home’s value

Why It Matters to Sellers

For sellers, a smooth appraisal is crucial to keeping your deal on track. Here’s how UAD 3.6 benefits you:

  • Fewer delays – The new process reduces the chances that the appraiser will need to come back for missing details
  • Clearer value support – A well-structured report helps justify your asking price with better documentation
  • Improved collaboration – Your agent can provide the appraiser with upfront details that help speed up the process

Stay Ahead of the Curve

These changes won’t happen overnight, but the transition starts in late 2025. It’s important to work with real estate professionals who are staying current on appraisal standards and know how to guide you through the process.

Want to learn more? The National Association of REALTORS® recently hosted a webinar featuring experts from Fannie Mae and Freddie Mac to explain what’s changing and why.

 

Bottom Line:
Whether you're buying or selling, the appraisal is a key part of the deal. The new UAD 3.6 format is designed to make that process smoother, faster, and more accurate. Knowing what’s ahead—and working with professionals who are ready—can give you a big advantage in tomorrow’s real estate market.

 

Resource: Realtor.com - Keisha Wilkinson | May 30, 2025