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The Future of Residential Appraisals: What Appraisers Need to Know About the New URAR and UAD 3.6

Picture of R. Ben Kenney By  R. Ben Kenney  ·  2 minute read

Big changes are coming to the world of residential real estate appraisal—and appraisers across the country need to be prepared. The rollout of UAD 3.6 and the all-new Uniform Residential Appraisal Report (URAR) represents a major step forward in streamlining, modernizing, and enhancing the appraisal process.

At Kenney Appraisal Services, we’re diving into what these updates mean for appraisers and our clients. Here’s a breakdown of what’s changing, what’s expected, and how you can prepare.

Goodbye Legacy Forms—Hello Flexibility

The most significant update? Legacy appraisal forms and form numbers are being retired.

In their place is a single, dynamic URAR that applies to all residential property types:

  • Single-family homes

  • 2- to 4-unit properties

  • Condominiums

  • Co-ops

  • Manufactured homes

This new format is designed to be adaptive, meaning the report will only display sections relevant to your specific assignment—traditional, exterior-only, desktop, or hybrid. The result: cleaner, more relevant, and more customizable appraisal reports.

Sneak Peek: View Sample URAR Reports

While appraisal software vendors are still working on full integrations, Fannie Mae has released 12 sample URAR scenarios that appraisers can explore right now.

To access them:

  1. Visit the Fannie Mae UAD Webpage

  2. Scroll to Appendix D-1

  3. Download the sample scenarios and review the PDFs

Each scenario is designed to show a different property type or assignment style. If you’re looking for a baseline example, check out Single Family 5 (SF5)—it’s the closest match to a typical, straightforward appraisal.

Sketch vs. Floor Plan: Updated Definitions

New guidelines also clarify when and how to submit footprint sketches and floor plans:

Footprint Sketch

  • Software-generated

  • Shows all exterior wall dimensions

  • Includes square footage calculations

  • Required for all traditional assignments (unless a floor plan is needed)

Floor Plan

  • Software-generated

  • Shows both the exterior footprint and interior layout

  • Required for:

    • Hybrid appraisals

    • Desktop appraisals

    • Traditional assignments with atypical layouts

     

Understanding the difference ensures compliance and enhances the clarity of your report.

Stop Smoothing: Apply Absolute Ratings

Fannie Mae is cracking down on relative condition and quality ratings, a practice that can hurt credibility. Appraisers are now explicitly required to rate each property based on absolute criteria, not how it compares to others nearby.

For example:

  • A home next to a busy street must receive an “Adverse” location rating—even if other homes in the neighborhood face similar conditions.

  • Once rated, that rating should remain consistent in future reports (e.g., when the property is used as a comparable).

This principle also applies to View and Location ratings.

Time Adjustments: Now a Must

In response to lender pressure and past industry inconsistency, Fannie Mae has added new language to the Selling Guide requiring market-supported time adjustments when indicated.

Appraisers must:

  • Analyze market trends for each assignment

  • Apply time adjustments when supported

  • Clearly document their rationale and method

Acceptable methodologies include:

  • Home Price Indices (HPIs)

  • Paired sales

  • Statistical modeling

  • Other standard appraisal techniques

Importantly, simply stating that no adjustment was made is no longer acceptable. You must show your work.

Implementation Timeline: Key Dates

Here’s when these changes will roll out:

  • Sept. 8, 2025 – Limited Production Period begins

  • Jan. 26, 2026 – Broad Production Period begins

  • Nov. 2, 2026 – UAD 3.6 becomes mandatory

  • May 3, 2027 – UAD 2.6 officially retired

You can view the full timeline on the Fannie Mae UAD Webpage.

Final Thoughts

The new URAR and UAD 3.6 update mark a major step forward for our industry—offering flexibility, clarity, and a more streamlined reporting process. At Kenney Appraisal Services, we’re embracing these changes and preparing to deliver appraisal reports that are not only compliant but smarter and more tailored to client needs.

Whether you’re a lender, agent, or homeowner, we’re here to guide you through the evolving landscape of property valuation with expertise and precision.