If you're thinking about selling a home in late 2026 or beyond, there's an appraisal change you should know about.

Beginning November 2, 2026, new appraisals submitted for loans being sold to Fannie Mae or Freddie Mac will be required to use UAD 3.6, which stands for Uniform Appraisal Dataset.

That sounds very technical, but here's why homeowners should care: the new appraisal report collects much more detailed information about your home.

Fannie Mae's sample reports range from 24 to 31 pages depending on the type of property. The new format includes more detailed information about condition, renovations, finished areas and other property characteristics.

And some of that information may not be in the county records or MLS.

You may be the only person who knows it.

Prefer to watch instead of read?
I'll break all of this down in the video below, including condition ratings, finished basements and what sellers should start doing now.

What is UAD 3.6?

UAD stands for Uniform Appraisal Dataset.

Rather than continuing to use the different appraisal forms we've been accustomed to, UAD 3.6 introduces a redesigned, dynamic appraisal report. The information required in the report changes based on the property being appraised.

For sellers, you don't need to learn the new appraisal system.

What you do need to understand is that more detailed and specific property information is going to matter.

What do C1 through C6 mean on an appraisal?

You've probably seen condition ratings such as C1, C2, C3, C4, C5 and C6 on an appraisal before. Those ratings aren't new, but the definitions under UAD 3.6 have been updated.

Here's a simplified explanation:

C1: New construction with no physical depreciation.

C2: Like new. This generally describes recently built homes or homes that have been entirely remodeled within the last three years, with no deferred maintenance or repairs needed.

C3: Well maintained with minimal wear. A home may have several newer components or a remodeled kitchen or bathroom without being a complete remodel.

C4: Adequately maintained with moderate wear. Some components may be dated but still functional.

C5: Significant wear with repairs or replacement needed.

C6: Severe damage or defects affecting the home's soundness or structural integrity.

One important point for sellers: a remodeled kitchen and bathrooms do not automatically make a home a C2.

A home can have a beautiful newer kitchen, updated bathrooms and newer mechanicals and still fit the C3 criteria. The condition rating looks at the property as a whole.

What does an “updated kitchen” mean on the new appraisal?

This is where your home improvement records become important.

Instead of simply describing a kitchen as “updated,” the new appraisal can include more specific information about what was updated, when the work occurred and the kitchen's condition.

There's a big difference between:

Painted cabinets, new countertops and new appliances in 2021

and:

New cabinets, countertops, flooring, appliances, plumbing and electrical in 2021.

The same idea applies to bathrooms.

If you're planning to sell, start thinking beyond when you completed a project. Keep track of what you actually did.

How is square footage handled in an appraisal?

Finished area is measured using the ANSI standard, and this can sometimes create confusion between what a homeowner considers living space and how that space appears on an appraisal.

One of the biggest examples in Ohio is the finished walkout basement.

If any portion of a level is below ground, that entire level is reported as below-grade finished area.

So let's say your home has:

2,000 square feet above grade
800 square feet in a finished walkout basement

That doesn't mean the finished basement has no value.

It means the 800 square feet is reported separately rather than simply combining everything and describing the home as having 2,800 square feet of above-grade finished area.

This distinction can also be important with split-level and bi-level homes.

What records should homeowners keep before selling?

You don't need to create a complicated filing system.

Start with a list of major improvements you've made to the property, including things such as:

• Roof

• Furnace and air conditioning

• Windows

• Kitchen and bathrooms

• Flooring

• Finished basement

• Electrical and plumbing

• Sewer or septic work

• Waterproofing

• Additions or converted spaces

For each project, write down when it was completed and what was actually done.

If you still have invoices, receipts, permits or warranties, keep those as well.

And don't worry if you don't have everything. The point isn't to recreate 20 years of homeownership perfectly. Start with what you know.

Should you renovate before selling?

This is also why I recommend talking with your real estate agent before spending $10,000, $20,000 or $30,000 getting your home ready to sell.

Sometimes that renovation makes sense.

Sometimes a smaller update makes more sense.

And sometimes the better financial decision is to leave something alone and let the next homeowner decide what they want to do.

Also remember that cost doesn't automatically equal value. Spending $40,000 on a kitchen doesn't guarantee that your home's market value increases by $40,000.

Before writing the check, let's look at comparable sales and what buyers in your price range are actually responding to.

What if your home doesn't match the county records?

If you've added a bathroom, finished an addition, converted a garage or completed other major work that doesn't appear in the county records, that's something I'd rather investigate before we list your home.

It doesn't automatically mean there's a problem.

But discovering a discrepancy after you're already under contract isn't ideal. The more we can learn about the property ahead of time, the better prepared we'll be.

Does UAD 3.6 apply to every home appraisal?

No.

The November 2, 2026 requirement applies to new appraisal reports for loans being sold to Fannie Mae or Freddie Mac.

Some banks and credit unions make portfolio loans that they keep rather than selling to Fannie Mae or Freddie Mac. Jumbo and other loan programs may also have different requirements.

FHA is also moving toward UAD 3.6, although its mandatory adoption date is separate.

For buyers, a good question to ask your lender is:

“What type of loan am I getting, and which appraisal requirements will apply to my loan?”

You don't need to become an expert in appraisal guidelines, but you should understand the type of financing you're using.

What should sellers do now?

My biggest recommendation is pretty easy:

Start keeping good records.

The appraisal is becoming more detailed, and some of the information an appraiser may need isn't something they can determine simply by walking through your home.

They may not know when you replaced the furnace.

They won't necessarily know what was done behind the walls during your kitchen renovation.

And they may not know that you replaced a sewer line seven years ago.

That's information you can provide.

At NextHome Next Stepp, we've created an Appraisal Information Sheet to help our sellers organize important property information and improvement history before the appraisal.

If you're thinking about selling and would like a copy to start working on now, reach out and we'll send one your way.

And one final request as we head into these appraisal changes:

Be nice to your appraiser. They have a lot more homework now.

I'm Wendy Anderson, Broker/Owner of NextHome Next Stepp in Ashland, Ohio. If you're thinking about selling, buying, downsizing, or you're just trying to figure out what comes next, I'm always happy to help.

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