New appraisal format brings major changes
A major appraisal reporting overhaul begins Nov. 2 for many conventional loans. Florida Realtors experts explain what changes and how to prepare.
The appraisal process is getting a major overhaul, and while Realtors® won't be responsible for completing the new reports, they'll have an important role in helping transactions move forward.
During a Florida Realtors® webinar last week, Kim Bell, a Realtor, Florida Realtors faculty member and State Certified Residential Real Estate Appraiser, explained how the new Uniform Appraisal Dataset (UAD) 3.6 and Uniform Residential Appraisal Report (URAR) will change the way residential properties are evaluated and documented.
"This is a major historic shift," Bell said. "We have never seen appraisal formatting and reporting the way that it is now."
The changes are designed to create more consistent appraisal reporting nationwide, giving lenders standardized, detailed information about the properties securing their loans.
A big change with a little breathing room
Fannie Mae and Freddie Mac have set Nov. 2, 2026, as the implementation deadline for the new format. However, lenders may apply for exceptions allowing them to continue submitting reports in the previous format through May 19, 2027. The exceptions aren't automatic.
Bell encouraged Realtors to ask lenders whether they've begun using the new reports, whether their appraisal providers are ready and whether they've received an exception.
The change applies to residential properties with one to four units, including single-family homes, condos, townhouses and manufactured homes.
FHA began accepting the new format Oct. 1 but isn't requiring it. USDA and VA also aren't requiring the format at this time.
More information, more time
The traditional appraisal report is being replaced by a dynamic format that adjusts the information requested based on a property's characteristics.
Bell said the new reports could run 45 to 50 pages or more, compared with the roughly six or seven pages Realtors are accustomed to seeing. The sales comparison section alone could expand from approximately 27 rows to more than 70 possible rows.
Appraisers will also document property condition, construction quality, defects, waterfront features, accessory dwelling units, improvements and other characteristics in greater detail.
That means more time collecting information and completing reports, particularly as appraisers learn the new software.
Property details matter
Realtors can help by making accurate property information available before the appraisal appointment.
Bell recommended gathering information about renovations, permits, solar installations, homeowners associations, waterfront features, storm-protection improvements and other property characteristics.
She also encouraged Realtors to become familiar with appraisal measurement standards, particularly when finished rooms, garages or accessory dwelling units could create differences between MLS square footage and an appraiser's measurements.
The more detailed reporting doesn't mean appraisers are becoming home inspectors or that new repair obligations automatically apply.
"What's changing is the reporting part of it being much more detailed than previously," Bell said.
Watch those contract deadlines
One of the webinar's strongest messages concerned loan approval deadlines.
Bell cautioned that appraisal completion must be considered when establishing financing timelines, especially if appraisers need additional time to complete the new reports.
Florida Realtors Associate General Counsel Heather Rhodes also addressed the role of different purchase contracts when repairs become an issue, emphasizing the importance of understanding the provisions in the form being used.
Bell urged Realtors to communicate with lenders before establishing loan approval deadlines rather than scrambling for extensions later.
"Better to be proactive than go back later and ask for an addendum or an extension," she said.
Realtors can also meet the appraiser at the property, provide relevant documentation and help facilitate the appointment without interfering with the appraiser's independent valuation.
The bottom line is preparation. Knowing what information an appraiser needs and confirming lender readiness could help prevent avoidable complications as the industry adjusts.
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