Starting in September 2025 appraisal reports for all GSE-conforming (government sponsored enterprise standards) loans will experience the biggest change since homes started being appraised. If you are a buyer it is important that you understand how they will differ.

Dubbed the Uniform Appraisal Dataset (UAD 3.6), lenders will start phasing in new methods of reporting via new forms over a 14 month period starting in a few months. The new forms will vary depending on property type but there will still be check boxes and spaces for the appraisers to fill out. The biggest benefit is that the new data will be easier to read and decipher.

The front page of the new reports, regardless of property type, will consist of a summary section that showcases the appraisal summary, market value opinion, photo and description of the subject property, and the type of appraisal conducted. This is great news for buyers, who often have no idea how to read appraisal reports.

The reports will contain more descriptive details about the property, both exterior and interior, including quality and condition. If there is an accessory dwelling unit (ADU), the report will contain a section for the appraiser to provide details. All this will provide a better idea of how the appraiser came to the assigned value.

Apparently these changes will be challenging for appraisers, as there will be major software changes. Real estate agents are being asked to help appraisers by providing important property information upfront (something I have always done as a listing agent since I started selling real estate – but many agents do not do so).

All in all this will take time for everyone to get used to, but it sounds like it will be better for all as well.