Real estate (Credit: Tierra Mallorca/Unsplash)
For buyers, appraisal processing may take longer as appraisers, lenders, and other professionals adjust to the new standards
Unless you work in real estate, you may not be aware of the major changes coming to residential appraisal reporting in 2026. The Pennsylvania Association of Realtors recently briefed members on these updates, which will begin rolling out in January and become mandatory by November 2026.
To understand the significance, it helps to revisit what an appraisal is: an independent valuation of a property by a licensed appraiser. For the first time in two decades, that process is being fundamentally reshaped.
Fannie Mae and Freddie Mac are implementing what they call “Appraisal Modernization,” centered on a new Uniform Appraisal Dataset (UAD 3.6). As explained during our October Realtor webinar by Czesalki Bradley, certified general appraiser and USPAP instructor, appraisers will now enter more structured, property-specific data that adapts to different home types. The goal, she noted, is to make appraisals “more transparent and aligned with how today’s mortgage systems handle data.”
What This Means for Consumers
For sellers, expect appraisers to spend more time at the property. The new system requires more detailed data collection, expanded photography, and thorough documentation. Homeowners should gather records of renovations, repairs, and maintenance in advance, as these details will carry greater weight in the valuation. Also, closing dates may need to be dated a little further out while the industry adjusts to this change in reporting.
For buyers, appraisal processing may take longer as appraisers, lenders, and other professionals adjust to the new standards. This could affect contract deadlines, including mortgage commitment and closing dates, so buyers should build in additional time when their agent is drafting the offer.
North Penn Market Statistic: Over the past year, homes in this market have averaged 20 days from active listing to sale. This timeframe may lengthen as the new appraisal system is implemented and fully standardized.
A Lasting Impact on the Housing Market
Technological advances have long signaled that change was coming to the appraisal process, and UAD 3.6 represents a significant shift. More detailed data could influence home valuations in both directions, making accurate pricing more critical than ever.
As the industry adapts, these updates have the potential to shape the housing market for years to come. The true impact will become clear only as the new system takes hold in 2026.
Important Note: This information applies specifically to appraisals conducted under Fannie Mae and Freddie Mac mortgage guidelines.
Nia Mullins is a resident of Lansdale Borough, Montgomery County, a parent, and a licensed REALTOR© with Realty One Group Restore
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