SCALE WITH LIBERTAS & EXP REALTY
By Tim & Julie Harris · October 26, 2026
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Your seller leans across the kitchen table and says, “My neighbor told me the new appraisal rules are going to tank home values. Should we wait?” If you don’t know what changed, you just lost control of the listing appointment.
Here’s the truth: appraisals aren’t getting stricter. They’re getting more detailed. And the sellers who can prove what they’ve done to their home are going to win. Our friend Coach Ken flagged this one for us, and the timing is perfect, because the new report becomes mandatory next Monday.
One new appraisal report replaces the old forms on November 2
Fannie Mae and Freddie Mac’s new appraisal report, called UAD 3.6, is mandatory for new appraisals submitted on or after November 2. One report replaces the familiar forms, like the 1004 for single-family homes and the 1073 for condos, with more photos and standardized ratings for condition, quality and improvements. There are new, specific fields for kitchen and bath updates, solar ownership, accessory dwelling units, outbuildings and views.
Our friend Andi Wagner of eXp Realty walks through it in her guest article, New Appraisal Rules: What to Tell Sellers Before Nov. 2.
Freddie Mac says it plainly: “The purpose of the URAR has not changed.” The appraiser is still estimating market value. The difference is detail, and detail rewards sellers who can document their home.
“The appraisal isn’t getting harder. It’s getting more detailed. So let’s make sure every upgrade you’ve made shows up in it.”
Some lenders get extra time, so you may see both formats for a while
On September 30, Fannie Mae and Freddie Mac gave approved lenders a one-time exception to keep using the old format until May 19, 2027. That exception is for mortgage companies, not homeowners, and November 2 still stands for everyone else. That means two lenders on the same street could be ordering two different reports next month.
Ask every lender one question: “Which appraisal format are you ordering on this loan?”
Plan for 2 to 3 weeks of delays while appraisers adjust to the new report
Every appraiser is learning a new report at the same time. Expect November closings to run 2 to 3 weeks longer than usual while everyone adjusts, and build that into your timelines.
Tell your buyers now that the appraisal may add 2 to 3 weeks. When you say it first, nobody’s surprised.
Listing agents: turn the new appraisal into your best listing-appointment talking point
The new report has more places to record condition, quality and improvements. A seller who can prove the roof is four years old and the kitchen was permitted gives the appraiser facts instead of guesses. Here’s the checklist to walk every seller through.
1. Get a pre-inspection. Find out what the buyer’s inspector and the appraiser are going to see, before they see it.
2. Make the remedies that matter. Fix leaks, broken fixtures, visible damage and safety issues. Skip the $40,000 remodel nobody needs.
3. Build the house binder. Receipts for every repair, permits for any additions or major systems, warranties for the roof, HVAC and appliances, and a dated upgrade list with before-and-after photos. If the home has solar, an ADU, a workshop or acreage, add the permits, dimensions and ownership papers too.
4. Verify the square footage before you market it. Don’t assume the county record or the last MLS listing is right. Watch for converted garages and unpermitted additions, because they may not count as finished living area.
5. Open every space on appraisal day. Every room, the garage, the attic, the shed. And secure the pets.
Then give the appraiser the binder and your comps, facts only. Never tell an appraiser what value you need. And remind your seller that the appraisal isn’t a home inspection, so the buyer will still have their own.
Make it a handout. Have your AI Business Bot turn these five steps into a one-page “Is your home appraisal-ready?” checklist with your name on it, and put it in every pre-listing packet.
When your seller says, “Shouldn’t we just wait?”
Seller: “My neighbor said the new rules are going to make appraisals come in low. Shouldn’t we just wait?”
Agent: “I’m glad you asked. The new report doesn’t cut values. The appraiser is still doing the same job. What’s different is the detail. On a scale of 1 to 10, how well documented are the improvements you’ve made since you bought the house?”
Seller: “Maybe a 4. We did the roof and the kitchen, but I have no idea where the paperwork is.”
Agent: “That’s really common. What would it take to get you to a 10? Most roofers can resend the invoice and warranty in a day. Let’s make the list together right now, and I’ll help you track down the rest this week.”
The moral of the story: the seller with the binder gets the credit. And the agent who shows them how to build it gets the listing. Add one question to our seller pre-qualification script in Premier Coaching: “What have you improved since you bought the home, and do you have the paperwork?”
Here’s the math
If an appraiser has no record of a $25,000 kitchen remodel and the appraisal comes in $10,000 short, that’s $10,000 your seller may give up at the table. A binder that takes one weekend protects it.
Buyer’s agents: keep your deals on schedule during the switch
Your buyers don’t need to know the form numbers. They need to know it may take 2 to 3 weeks longer and you’re on top of it.
1. Ask the lender which format it’s ordering the day the offer is accepted. “Which appraisal format are you ordering, and when do you expect it back?” Ask what kind of inspection the appraiser will do too, because not every loan gets the same visit. Then check it against your contract deadlines, and ask for more time up front if it’s tight.
2. Set expectations with your buyer. “The appraisal report is changing nationally on November 2. Your appraiser may take more photos, and it may add 2 to 3 weeks. I’ve already talked with your lender.”
3. Remember that the appraisal is ordered by the lender, not the house. If your buyer switches lenders on a conventional loan, be ready for a new appraisal. And FHA and VA loans have their own rules and timelines, so don’t assume the November 2 change applies to every deal.
4. Fully pre-qualify your buyers on an appraisal gap. “If the appraisal comes in below the price, what would you want to do?” It’s an easy conversation now and a hard one later.
The moral of the story: buyers don’t panic about delays. They panic about surprises.
Does my seller need to remodel the kitchen before listing?
No. Nobody has to remodel to sell.
Fix the deferred maintenance first. Leaks, broken fixtures and anything that looks like damage worry buyers most.
Weigh every bigger project against the return. A new kitchen rarely pays back dollar for dollar right before a sale.
Say this: “Let’s spend your money where it shows up in the price, and let’s document everything you’ve already done.”
What if the county square footage looks wrong?
Find out now, before the appraiser does.
County records are often off, and a finished basement usually isn’t counted as above-grade living area. Often a converted garage isn’t either, though space that isn’t counted as living area may still add value.
Get a professional measurement if you’re unsure, and put the number you can prove in the MLS.
Say this: “Let’s market the number we know we can prove, so the appraisal doesn’t surprise anyone.”
Does an appraisal stay with the house if the deal falls through?
It depends on the loan.
Conventional: usually not. The appraisal is ordered by the lender for that buyer’s loan.
FHA: it’s tied to the FHA case number. An FHA appraisal is generally valid for 180 days, and in some cases the case and its appraisal can be transferred.
So take a low FHA appraisal seriously. Talk with your seller about addressing the issues, and ask the lender how that appraisal could affect the next FHA buyer.
How do I stay calm when an appraisal comes in low?
Decide what you’ll do before it ever happens.
Write your plan now, while you’re calm. Request a reconsideration of value with better comps, renegotiate the price, have the buyer cover part of the gap, or meet in between.
Tell your clients up front. “Appraisals sometimes come in low. If it happens, here’s exactly what we’ll do.” Now it’s a plan, not a crisis.
When the call comes, take a breath, then pull out the plan. Your clients take their cue from you.
What about Canada?
Not directly. It’s a U.S. change for loans sold to Fannie Mae and Freddie Mac.
But the house binder works anywhere. Receipts, permits and warranties help appraisers and buyers in every market.
Make it part of your listing presentation, and you’ll stand out from every other agent in the room.
The new appraisal doesn’t cut values. It rewards proof. Be the agent who helps your sellers bring it.
Your challenge this week: Call your top five lenders and ask, “Which appraisal format will you be ordering after November 2?” Pull up your active listings and flag any square footage, permit or upgrade details to check with your seller. Then take the appraisal-ready checklist to every listing appointment, and book three appointments this week. That’s the real work of real estate. Email us how many sellers said yes to the binder.
Want someone in your corner holding you to it? Join Premier Coaching at https://premiercoaching.com/. Try it for 7 days for just $1.
Tim and Julie Harris are internationally recognized real estate coaches, best-selling authors and the voices behind Real Estate Coaching Radio, the nation’s #1 daily podcast for real estate professionals.
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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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