A major transformation is coming to the appraisal world starting January 2026. A brand-new appraisal form—known as URAR/UAD 3.6—will be required for all loans backed by the GSEs (Government-Sponsored Enterprises). Other government programs such as HUD, VA, and USDA are also expected to adopt these new form requirements. Broad production of the form begins in January 2026, full mandatory use is scheduled for November 2026.
The biggest change is that one universal form will now be used for all 1–4 unit residential properties, streamlining the appraisal process. It will not apply to land-only or commercial properties, which already use different forms.
Once the Appraiser begins completing the form, it will dynamically adjust to fit the specific property type. This flexibility is designed to improve reporting consistency across all property types.
There will definitely be a learning curve for all parties involved. This new form includes more detailed data points, which means the appraiser must gather more comprehensive information about the home and its key systems.
Here’s how you can help streamline the process:
Provide the year and estimated cost of upgrades, renovations, and additions
Share a plat map of the property, if available
Give details about major systems: HVAC, plumbing, electrical, etc.
The new form requires Appraisers to objectively assess the condition and quality of a home’s components using predefined rating scales. This reduces subjective commentary and ensures more standardized, data-driven reporting. For example, rather than describing the remaining economic life of a system in a narrative, the appraiser will select from predefined options.
Appraisers will now need to complete much of the form on-site using mobile devices, including creating digital sketches of the property. While not officially mandated, mobile data collection will become a practical necessity to meet the new standards efficiently.
This transition will be especially challenging for veteran Appraisers who are accustomed to traditional reporting methods. Sketching large or complex homes on-site using a mobile device can be time-consuming and error-prone. Items missed during the inspection may require a return visit, which is inefficient and frustrating.
Many long-time Appraisers are choosing to step away from lender work due to these changes. As a result, more experienced Appraisers may be replaced by less seasoned professionals. While fresh perspectives are welcome, the loss of deep industry experience can impact the accuracy and credibility of valuations.
This new form will require additional time for completion, more explanation to clients, and carries greater liability for the Appraiser. As a result, higher fees for appraisal services should be expected.
Be aware that this change has been years in the making—and it’s coming soon. If you're involved in real estate transactions, it’s essential to work with an Appraiser who:
Understands the new URAR/UAD 3.6 requirements
Is comfortable using mobile technology in the field
Has the experience and insight to navigate complex properties confidently
Attention all Realtors, this is very important. Fannie Mae/Freddie Mac, FHFA in their infinite wisdom has advised lenders that they can start using more Desk Top Appraisals starting in March of this year. At first you think great, quicker turn times for appraisals, lower cost reports and they do not have to go inside the home. But WAIT. Guess what? Desk Top Reports require interior WALLS and a Floor plan sketch!
How are the Appraisers going to get that information if they are conducting the Appraisal from their desk you ask? YOU the Realtor will be called upon to do this for them. YEP, it is either you or the homeowner. Now envision this, you or the owner has to have an iphone or Android APP on their phone that allows them to walk around the entire outside of their home (older owners will just love this) and then on the inside, be tech savvy enough to hold the phone and walk through the house and measure the home by moving their phone along all walls or ceilings so the Appraiser can somehow put together a sketch/Floor plan. They have to talk to you or the homeowner about any issues they see as they walk thru the house in detail.
Lenders think Desk Top reports will take Appraisers less time to complete. Guess what it will take LONGER. We have to track down the Realtors or homeowners to set up a time to walk thru the home and do all that is required. Plus you know the homeowner or YOU as the Realtor will want to ask the Appraiser questions as they move thru the home, some they can answer, some they cannot. This process will take much longer as the Appraiser will have to train people every single time they do a report on how to do these measurements. They have to shedule times to do this. Realtors and Homeowners this is NOT YOUR JOB, but this is the reality IF Lenders choose to request Desk Tops from Appraisers.
The Appraiser can walk thru a home, take laser measurements and at the same time note things about the home WAY faster than anyone else can as they have been trained and have been doing this every single day for years. Also Fannie will require Appraisers to use ANSI measurement guidleines as it relates to how to sketch a home. If you have NO clue what ANSI is then get educated now.
So REALTORS, you have the ultimate power with your lenders to bombard them with emails or TEXTS and tell them do not have Appraisers do Desk Top Appraisals. It is crazy that they want a full floor plan with interior walls, when they never required that for full appraisals. The only time we had to do that was if there was an unusual floor plan. So I guess they want to make sure that since we are not seeing the inside of the home they want interior walls on the sketch to make sure the home does not have some sort of unusual floor layout.
Trust me when I tell you this will be very cumbersome upon the person trying to do the measurements and showing the Appraiser every aspect of the rooms inside and outside so the Appraiser can determine if there are any issues in the home or with the floor plan.
Fannie, Freddie and FHFA received NO input from Appraisers who have boots on the ground when they came up with this insane idea. Only YOU can help to squash this requirement in their tracks as they clearly don't want to hear from us!
Also be aware that many Appraisers have already said they will NOT due desk top appraisals! So good luck lenders trying to get this done.
Check out this poll which was just started minutes ago on a National Appraisal Facebook page asking how many Appraisers will or will not complete Desk Top Appraisal reports. Appraisal Poll on Desk Tops
SHARE, SHARE, SHARE this post!
NAR (National Assoc. of Realtors) posted top 3 Seller concerns. One of them was: "Price Their Home Competitively" “They're telling us that puffing their egos with a fat listing price isn't what they want. They want their property to sell.”
So, I thought "put your money where your mouth is" since I suggested Pre-Listing Appraisals in order for all 3 top seller concerns to be met. Based upon our pre-listing appraisals in 2018, the sellers who placed their homes on the market and listed them CLOSE to our appraised value, the Days On Market for these homes (many of them lakefront) averaged 34 days! The average for similar properties is around 50-60 days. In 36% of the cases they sold in 10 days or less. In only 1 case over 120 days. In some cases the owner got more than their listing price as they priced it very well.
In the cases where the owner decided to list WELL over our appraised value (meaning over 10% of value) not a good story! Longer DOM than typical and price reductions, sometimes several. In many cases they changed REALTORS! Not good! When that 2nd Realtor listed closer to appraised value...Bingo they get the SALE & commission!
So for 2019, consider a Pre-Listing or POST-Listing Appraisal if your home is on the market longer than 60 days. This could be your bullett proof marketing tool to close more deals quickly.
We hope 2019 is one of your best years yet, but in order for that to happen you have to pull a few tricks out of the marketing bag as all indicators are that the market is slowing a bit for 2019 with 2020 the possible start to some major corrections!