UPGRADE WITH LIBERTAS & EXP REALTY
By Tim & Julie Harris · October 20, 2026
AGENT BRIEFING · GUEST ARTICLE
Guest article by Andi Wagner, eXp Realty · About a 4-minute read
Hi {{first_name|there}},
The worst time to discover that your listing’s square footage doesn’t add up is when the buyer’s appraisal arrives.
A converted garage, an undocumented addition or an ADU described too casually can leave a seller answering questions just when everyone expects to move toward closing.
With new appraisal reporting requirements approaching, my advice is simple: get the property facts right before they become a transaction problem.
Fannie Mae and Freddie Mac are transitioning to Uniform Appraisal Dataset 3.6, or UAD 3.6, and a redesigned Uniform Residential Appraisal Report that captures more structured detail about the property. There’s no automatic reduction in home values and no universal requirement for sellers to renovate.
The deadline, without the confusion
November 2, 2026: UAD 3.6 becomes mandatory for new appraisal reports initially submitted to the agencies’ Uniform Collateral Data Portal. The initial submission date controls, not the loan application or the appraisal’s effective date.
The exception: Approved mortgage sellers with a policy exception can submit new reports in the older format through May 19, 2027. Here, “seller” means the company selling mortgages to the agencies, not the homeowner.
Ask the lender which format applies. The exception is not a blanket postponement.
What your sellers will notice
The new report adapts to the property and assignment, replacing multiple legacy forms. It has more specific fields for kitchen and bathroom updates, condition, solar ownership, accessory dwelling units, outbuildings and views.
Photo requirements are more explicitly defined, too. Applicable interior reporting includes kitchens, bathrooms, bedrooms and other main living areas. The assignment determines the required inspection and images; not every loan involves the same visit.
Prepare sellers for reasonable access requests, and explain that an appraisal estimates value for its intended use. It doesn’t replace a buyer’s home inspection.
A square-footage surprise you can address early
Consider this hypothetical: an old listing describes a home as 2,400 square feet. That figure includes a 400-square-foot converted garage, and the seller assumes the same number belongs in the new listing.
Before repeating it, verify how that space was measured, finished and permitted, and how it should be reported. Its treatment depends on the property and applicable requirements. Space that can’t be included in the primary finished-area figure may still contribute value.
UAD 3.6 provides more detailed area reporting. It didn’t introduce ANSI measurement standards from scratch, and whether they apply depends on the assignment and property type.
A disagreement between county records, the MLS and an appraisal deserves investigation. Repeating the oldest number won’t resolve it.
Don’t turn preparation into unnecessary remodeling
A dated kitchen doesn’t automatically require replacement, and a $60,000 renovation doesn’t guarantee $60,000 more in appraised value. Market evidence matters.
Discuss visible damage, deferred maintenance and potential safety or structural concerns before listing. Evaluate cosmetic spending on its merits. The new reporting format alone is no reason to send a seller shopping for cabinets.
For acreage, workshops, solar or an ADU, assemble relevant permits, dimensions, ownership documents and property-rights information. Good documentation explains what exists; it doesn’t guarantee a dollar adjustment or prove that a use is legal.
Before the appraiser arrives
✅ Verify the facts. Review living area, additions, ADUs and accessory structures. Investigate conflicting records.
✅ Document improvements. List major work and dates; include available permits and supporting records.
✅ Arrange access. Confirm which spaces need to be accessible, and secure pets.
✅ Provide relevant evidence. Share factual property information and useful comparable sales through appropriate channels, respecting appraiser independence.
✅ Confirm timing. Ask the lender about format, inspection type and expected turnaround before promising a closing schedule.
These are preparation recommendations, not new mandatory seller obligations.
A seller conversation you can use
“The appraisal report is becoming more detailed. That doesn’t automatically lower your home’s value or mean you need to renovate. Let’s verify the property information, document your improvements and confirm what the buyer’s lender requires.”
FHA and VA have separate requirements and implementation guidance, so don’t apply this deadline to every loan program. And a cash buyer can order an appraisal even when no lender requires one.
Your assignment this week: Pull up your active listings. Where do square footage, permit records or improvement details need clarification? Raise those questions with your sellers now, while there’s still time to resolve them before November 2.
👉 Forward this to your lender partner and your team before your next listing appointment.
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— Tim & Julie Harris
Founders of Tim & Julie Harris Real Estate Coaching | Publishers of Harris Real Estate Daily | Hosts of PowerHouseTalk | eXp Realty Sponsors at Libertas
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