Sacramento Appraisal Blog

Appraisal forms have been redesigned, and there are some massive changes. I think appraisers are going to feel the weight of this change the most, but the real estate community also has a learning curve. Today, I’d like to unpack what the new form looks like, show some of the bigger changes, and offer practical advice to real estate agents. I hope this will be helpful.

This post is written in Q&A format to skim quickly or digest slowly. I included practical advice from colleagues at the end too. 

UPCOMING SPEAKING GIGS:

11/19/26 Appraiser webinar TBA
1/15/27 PCAR
1/26/27 Residential Roundup

WHEN DOES THIS CHANGE TAKE EFFECT? 

The rollout date was a few days ago on November 2, but not all lenders or even appraisal software companies are ready, so Fannie Mae has issued a temporary exception, which means the UAD 3.6 deadline will be solidified at some point in 2027. So, it’s going to be hit and miss with the new format being used. 

BRO, WHY ARE THE FORMS CHANGING?

The existing appraisal forms are twenty years old, so at some point an update was going to happen. The new form has HUNDREDS more data fields, and the goal is to help with readability as it focuses on boxes to check instead of appraisers inputting so much written commentary. Of course more fields will lead to more data mining too.

DOES THE NEW FORM ONLY APPLY TO LOAN APPRAISALS?

This is NOT for private appraisals. The new UAD 3.6 mandate will apply to Fannie Mae and Freddie Mac, and FHA has also adopted it (there is no implementation date for FHA yet). It’s to be determined what VA and USDA do. 

WAIT, THERE’S ONLY ONE FORM NOW? 

Yep, there’s only one form that will be used for a single-family home, condo, manufactured home, and 2-4 unit property. This means there will no longer be old school forms like the 1004, 1025, 2055, or 1073 because the new form encompasses all of these in one place now.

WHAT NEW TYPES OF DATA WILL BE CAPTURED?

There are new data fields or sections for the following. Thanks to Joe Lynch for this information that I took from his slide deck (with permission).

• Front door elevation
• Converted area
• Estimated roof age
• Noncontiguous finished area details
• Individual room improvements, quality, & condition (kitchen, bath, bed)
• Ceiling height
• ADU details
• Outbuilding details
• Amenity details 

IS THIS NOW ABOUT FACTS INSTEAD OF AN OPINION?

The biggest misconception I’ve heard is appraisers are now using facts and data instead of an opinion. This is blatantly wrong. The best way to understand this is appraisers now have hundreds more boxes to check, so the new form is pulling appraisers away from adding so much written commentary. So, no more “See Addendum” and then trying to find the right commentary in an addendum that’s four pages long. The appraiser is still offering an opinion of value, and it’s not like appraisals didn’t have facts and details before. It’s just the focus is on creating a more uniform organized product instead of relying so heavily on written commentary. 

WHAT EFFECTS CAN WE EXPECT? 

• Longer inspection times (especially at first)
• Appraisal fees might go up  
• Longer turn-time for appraisals (especially at first)
• The appraisal contingency period might need to be longer 
• Some appraisers may want to focus on non-lending work or retire
• Reports should be easier to read
• Expect more questions from appraisers about the subject property and comps
• There will be a learning curve to read the report since it’s so different
• Agents can be helpful by adding more details in MLS (see tips below)
• There is so much talk about this being a revolution for the real estate industry, but that’s pretty sensational. Nobody will feel this more than appraisers. 
• Everyone is going to figure this out, and at some point it’s going to feel normal to use the UAD 3.6 form.

WHAT DOES THE NEW FORM LOOK LIKE? 

I took the following screenshots and some of the verbiage from Fannie Mae, and you can watch their training video here if you wish. 

TEN CHANGES TO KNOW ABOUT THE NEW FORM

1) The first page is a summary: This is what the first page looks like. It’s basically a summary of key sections in the report. I think this is a major improvement to be able to quickly see all of these details in one place. People don’t often read appraisals, so I guess if that continues to be the case, then all you have to do is check out the value on the first page. 

2) Some sections pop up if needed: Some sections are going to always be displayed, but others will only conditionally display if they are applicable. What you won’t see are blank sections, empty spaces, or fields saying “Not Applicable.” The form essentially changes to offer additional fields depending on the boxes an appraiser checks (or if it’s a condo, for instance, there is more condo project information required). This is in contrast to an appraiser writing, “See Addendum” in so many sections of the old form. 

3) A greater focus on condition and quality: There will be way more details about condition. Appraisers are being asked to assign a condition rating to the exterior and also discuss in depth the condition of various features such as exterior walls, foundation, roof, and windows. Granted, appraisers can still say stuff like, “Typical wear and tear,” but this is profoundly more organized than the previous forms. Fannie Mae and Freddie Mac state the goal here is to minimize subjectivity and have uniformity as appraisers focus on speaking to various aspects of condition in every report (more uniform data mining too). 

And here’s a screenshot as an example of interior condition. This is why it will help appraisers if agents give a list of upgrades with time-frames. 

Notice how appraisers are going to list the ceiling height also. 

4) More organized market data: There is a section to more clearly talk about market dynamics. I think this is a step in the right direction to get more specific, but not all markets fit so neatly into boxes like this. I’m curious what rural appraiser colleagues are going to do here when there are very few data points. If you notice, it’s no longer a few boxes for appraisers to check to say whether prices are going up, stable, or down. This requires more details and some market commentary, and there are pluses and minuses to that. 

5) More specific reporting: Appraisers are going to be asked in multiple sections to discuss whether there is a negative, positive, or neutral impact on the property’s value or marketability relating to various aspects. For instance, here’s an example of the view and site features. 

6) More focus on defects (exterior and interior): It’s not that appraisers ignored condition before, but now there is a more uniform approach to looking at condition on the outside and inside of the house. This is why appraisers are going to need more specific information from agents. Knowing the year a roof was installed, for instance, can be helpful for the appraiser when talking about condition. 

7) The sales comparison grid got an upgrade: A photo of each comparable sale is right there, but the grid is also dynamic so you don’t have to go to an addendum to read more about the condition of each comparable. The appraiser can also add additional rows if needed. Moreover, there is a summary section where an appraiser can discuss key findings and adjustments. 

8) Photos are placed in their relevant sections: For instance, when an appraiser mentions an amenity such as a balcony, the photo would be right there instead of in a photo addendum. 

9) Much more information on accessory dwelling units: The previous appraisal form had literally one check box to say whether there was an ADU, and that’s it. Now, there is so much information to consider such as the location of the ADU, square footage, address, etc…

10) More details about outbuildings: There is a section to talk about outbuildings now. I think this is an improvement since there wasn’t a formal place to do this on the previous form. 

IS THERE ANY CONTROVERSY WITH THE NEW FORM? 

Yes, certification #25 in the form gives many different entities the right to use the appraisal and data in the appraisal (data now includes so many more details about an owner’s house). Some people say this is no biggie, but many appraisers are concerned. I’m personally concerned over this. Who are “secondary market participants” and “data collection or reporting services?” 

HOW DO APPRAISERS FEEL ABOUT THE NEW FORM?

I can’t speak for all appraisers, but I can say what I’ve generally heard from colleagues. On one hand, I hear some optimism that this form makes more sense logically and there was a need for change, but overall appraisers are in the thick of feeling overwhelmed. It’s especially challenging that it’s a mess with software companies right now. There are definitely some appraisers who have embraced this new reality too. I had one person tell me this week that it’s just not that big of a deal. So, it’s a mixed bag. 

PRACTICAL TIPS FOR REAL ESTATE AGENTS:

I asked some appraiser colleagues to give some advice to real estate agents about these new forms, and I appreciate these helpful nuggets. 

Lindsay Cappelletti: The way appraisers appraise a property isn’t changing, the way we report those results is what is changing. As with anything new, be patient with your local appraisers as they navigate this change. Prepare your clients ahead of time, that there may or may not be a need to extend an appraisal contingency, so that expectation is set in advance if it is needed. Listing agents can help by being much more detailed in the data they input in their MLS listing. Real estate professionals in general are one the most resilient groups out of any industry and together we will all get through this for the better. 

Joe Lynch: Appraisers need to report more details about the subject. It’s very helpful for agents to prepare a list of updates, improvements, and repairs made over the past 20 years to help us rate the home’s quality and condition overall and for individual elements. Please post this list to the MLS listing so everyone, appraisers and agents both, can have a better understanding of the property. The UAD 3.6 reports require significantly more information gathered at inspection compared to UAD 2.6 reports, jumping from approximately 190 data points to more than 900 data points at most with UAD 3.6. I expect UAD 3.6 reports to take more time for me to write, even after the learning curve. Additionally, appraisal software costs are rising, and many appraisers have decided not to complete UAD 3.6 reports. UAD 3.6 reports will take more time to prepare, with increased software costs, and with fewer appraisers. Expect the cost of an appraisal to rise.

NOTE: Thanks to Joe for letting me check out his UAD 3.6 slide deck to help formulate some thoughts for this post too. 

Gary Kristensen: After speaking to real estate agents about UAD 3.6 roughly twenty times over the past six months, I’ve found that their biggest concerns are higher appraisal fees and longer turnaround times. Those concerns are valid, and appraisers share them, but I’m optimistic neither will change dramatically. Some appraisers may not like me saying this, but I think appraisal fees are driven more by supply and demand than the amount of work involved. With interest rates still high and refinance activity low, there are plenty of appraisers looking for work right now. Meanwhile, appraisers and software companies are getting better at working with the new forms, and AI is becoming a useful tool for appraisers at the same time we’re being asked to do more. What agents are more likely to notice are longer property inspections and more questions about renovations, updates, and property characteristics. My advice to agents is to provide accurate, detailed MLS information, particularly good photographs, floor plans, and descriptions of improvements. Appraisers may also reach out more frequently to agents who represented comparable sales to verify property details. I’m hopeful that after a learning curve, the new reports will be easier to read and more transparent, with expanding fields reducing the need for lengthy addendums and hopefully fewer underwriting questions.

Tom Horn: I’ve been speaking to agents about UAD 3.6 and how they can help appraisers by providing as much detail as possible about the house in the MLS listing. I came up with 5 questions that agents should ask when describing a property feature. They are as follows:

Brad Bassi: Be patient with the good appraisers calling for information, don’t short change the volume of photos, and be prepared to read slowly and attentively to page 1 with the summaries of the report.

ACTION STEP FOR AGENTS:

To echo what my colleagues said, it will be most helpful to have more details about improvements and the year the improvements were made. I may write a follow-up post with an updated appraiser info sheet. Also, give yourself some space to figure this out. I recommend reading UAD 3.6 reports when they start happening in your transactions. Get used to the format, ask questions if you don’t understand something, and be more intentional about providing more details in your listings that appraisers can use. This ends up being really helpful to appraisers down the road who are going to use your sale as a comp too. Lastly, be sure to ask appraisers for their thoughts and feedback about the forms. I think so many non-appraisers speak for appraisers, and while that’s sometimes helpful, it’s not always the full picture. 

CLOSING THOUGHTS

I know this was a long post, and I’ve been having people prod for me months to write something or speak in offices. Thanks for your patience. My personal opinion is the old appraisal forms needed a redesign in a bad way, so something had to happen. I think getting away from sporadic commentary in long addendums is a positive direction too for readability. But dang, this is so much work, and I’m concerned about that part, especially if lenders are resistant to adjust fees. I question the relevancy of some of the data fields, and I’m consistently concerned when appraisers are asked to do more and more. For me, I am focused on private appraisals, and UAD 3.6 encourages me to continue doing what I’m doing. Maybe I’ll push out some additional thoughts eventually. This is what I have for now. 

Thanks for being here. I appreciate it. 

Question: What do you think is positive about the new form? What is negative? I’d love to hear your take.  

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