New Mortgage Appraisal Rules Are Coming: How URAR Could Affect Your Home Sale
Home appraisals are changing, and while the update may sound like something happening behind the scenes of the mortgage industry, it is worth understanding if you are planning to buy or sell a home.
Beginning November 2, 2026, UAD 3.6 becomes mandatory for new appraisal reports submitted to the Uniform Collateral Data Portal for Fannie Mae and Freddie Mac. The change includes the redesigned Uniform Residential Appraisal Report, or URAR.
In this Real Estate Tip Tuesday episode, Katie Halle Lambert, Associate Broker with Team EvoAZ at eXp Realty, and Ryan Gilliam with Your Best Mortgage explain what is changing, why the new appraisal format matters, and what buyers and sellers should understand about the transition.
What Is Changing With Home Appraisals?
Traditionally, appraisers have used different appraisal forms depending on the type of property being evaluated. As Ryan explains in the episode, that includes forms such as the 1004 for a single-family property, 1073 for a condo, and 1025 for a 2 to 4 unit residential property.
The redesigned URAR moves away from that approach toward one dynamic appraisal report that adapts to the property being appraised.
If the property is a condo, for example, the report collects the information needed for that type of property. If it is a manufactured home, the report adjusts accordingly.
Rather than trying to fit each property into a particular form, the report adapts to the property.
That explanation is consistent with Fannie Mae and Freddie Mac's description of UAD 3.6 as a dynamic reporting structure designed to account for different property and inspection types.
Why Are the Appraisal Reports Changing?
The existing appraisal forms were designed decades ago, and homes have changed significantly since then.
Today, properties may include features such as solar, Accessory Dwelling Units (ADUs), energy-related improvements, and smart-home technology. Under the existing system, important property information can end up buried in pages of appraisal comments and addendums.
The new format is intended to collect more of that information as standardized data. Fannie Mae and Freddie Mac specifically identify the reliance on free-form commentary addendums as one of the limitations the UAD 3.6 redesign addresses.
As Ryan summarizes it, the goal is better data, greater consistency, and more transparency.
What Could the New URAR Look Like for Buyers and Sellers?
Buyers, sellers, and their real estate agents should expect more structured information about the property in the redesigned appraisal report.
Familiar condition and quality ratings will still be part of the appraisal process, but the report can provide more detail surrounding the condition and individual components of the home.
Instead of simply seeing a condition rating, there may be more structured information helping explain why the property received that rating.
That additional detail could be particularly useful when evaluating a remodeled home because improvements and property characteristics can be documented more clearly.
Could More Detailed Appraisals Mean Fewer Revisions?
One potential benefit Ryan discusses is fewer appraisal revisions.
When property information is collected in a more detailed and standardized way from the beginning, an underwriter may have less need to request missing information later.
That does not mean revisions will disappear. It does mean the redesigned report is intended to make appraisal information more structured and consistent from the start.
Will the New Appraisal Rules Change Your Home's Value?
This may be the biggest question for homeowners and home sellers.
The important distinction is that the reporting system is changing. The episode does not describe a new formula for determining a home's market value.
Appraisers will still analyze the property, comparable sales, and current market conditions.
So homeowners should not assume that the redesigned URAR automatically means their home will appraise higher or lower. One of the biggest changes is how appraisal information is collected, organized, and reported.
Expect a Learning Curve
A significant industry change can also come with growing pains.
Appraisers, lenders, underwriters, real estate agents, buyers, and sellers will all need time to become familiar with the redesigned reports. Someone accustomed to seeing the traditional appraisal forms may initially wonder why the new report looks different or how to interpret it.
That learning curve is one of the potential challenges Ryan highlights in the episode.
The transition is already underway. Fannie Mae and Freddie Mac entered broad production for UAD 3.6 on January 26, 2026, allowing lenders to begin submitting the redesigned reports ahead of the mandate. Starting November 2, 2026, all new appraisal report submissions to UCDP must use UAD 3.6.
What Should Arizona Home Buyers and Sellers Know?
For most buyers and sellers, the key takeaway is simple: the appraisal report is changing, but that does not mean the basic concept of determining market value is being reinvented.
The redesigned URAR is intended to provide more standardized, detailed, and transparent property information.
Because appraisals can play an important role in a real estate transaction, understanding the change ahead of time can help buyers and sellers recognize why an appraisal report may look different as the new format becomes standard.
Prefer to Watch Instead?
Watch this episode of Real Estate Tip Tuesday to learn how the redesigned Uniform Residential Appraisal Report (URAR) is changing the appraisal process, what buyers and sellers should expect, and why the new format could make appraisal reports more detailed, consistent, and easier to review.
Have Questions About Buying or Selling a Home?
Team EvoAZ can help you navigate the real estate side of your purchase and understand the documents and deadlines that come with an Arizona home transaction.
Katie Halle Lambert | Team EvoAZ
Text ConnectWithKatie to 480-508-9828
Have Questions About Your Mortgage?
Whether you're purchasing your first home, refinancing, or simply have questions about your financing options, Ryan is here to help.
Ryan Gilliam | Your Best Mortgage
Text ConnectWithRyan to 480-508-9828
