What Homebuyers and Sellers Should Know About Upcoming Appraisal Changes

Residential appraisal reports are changing, and buyers and sellers may notice a difference in how long appraisals take, how much information is requested and how the process fits into the overall closing timeline.

I recently attended a real estate industry luncheon where Mike Brubaker, President and CEO of Brubaker & Associates, Inc. Real Estate Appraisers and Consultants, shared an overview of the upcoming changes and what they could mean for the real estate industry. Mike brings more than 40 years of experience in real estate appraisal and has held the SRA designation from the Appraisal Institute since 1988.

One of my biggest takeaways from the presentation was the importance of preparation. If buyers, sellers, lenders and Realtors understand what may be required ahead of time, we can set better expectations and reduce surprises as a transaction moves toward closing.

Beginning November 2, 2026, a new appraisal reporting format will become mandatory for new Fannie Mae and Freddie Mac appraisal submissions. While the purpose of an appraisal remains the same, the amount of property information being collected and reported is expected to increase.

What Is Changing?

According to the information Mike shared during the presentation, appraisers may be required to collect and report more detailed property information, including:

• Foundation measurements
• Ceiling heights
• The condition and quality of individual rooms
• Renovations and additions
• Whether improvements were permitted
• HOA or PUD information
• Surveys, floor plans and other property documents

With more information being documented, appraisal appointments themselves may also take longer than buyers and sellers have been accustomed to.

What Could This Mean for Closing Timelines?

Mike also discussed some of the challenges that could come with the transition as appraisers, lenders and appraisal software companies adjust to the new reporting process.

Buyers and sellers could experience:

• Longer appraisal appointments
• Longer turnaround times
• Additional questions or document requests
• Delays when information is missing
• Reports being returned for corrections

From my perspective, this makes communication throughout the transaction even more important.

If you’re working toward a specific closing date, you’ll want to understand when the appraisal is being ordered and whether enough time has been built into the schedule for the appraisal to be completed, reviewed and approved.

How Can Buyers and Sellers Prepare?

One of the simplest ways to help the process is to have property information available early.

Depending on the home, that may include:

• A current survey
• Available floor plans
• HOA or PUD information
• A list of renovations and additions
• Approximate dates improvements were completed
• Permits, receipts or contractor records when available
• Information about unique property features

For buyers, I also recommend staying in close communication with your lender and Realtor so you understand where the appraisal falls within your financing and closing timeline.

The goal isn’t to make the process feel more complicated. It’s to make sure everyone involved has the information they need at the right time.

What About New Construction?

For new construction homes, plans, specifications and upgrade information may become particularly important.

A completed home can include structural selections, design upgrades and features that differ from the standard floor plan. Making that information available can help give the appraiser a more complete picture of the home being evaluated.

At Homes by Faircroft, we want to make sure the information about each home is clear and available when it’s needed. My goal is to help our buyers, Realtors, lenders and other partners stay informed throughout the transaction so there are fewer surprises as we approach closing.

The Bottom Line

The purpose of the appraisal is not changing. What is changing is the amount of information being collected and reported.

Mike Brubaker’s presentation reinforced something I’ve seen throughout my career: preparation and communication can make a significant difference during a real estate transaction.

As these appraisal changes take effect, my advice to buyers and sellers is simple:

Prepare early, allow enough time and keep communication open throughout the transaction.

If you have questions about how these appraisal changes could affect your homebuying experience, my team and I at Homes by Faircroft are here to help you better understand the process and what to expect along the way.

Jean Morency
Director of Sales
Homes by Faircroft

314-527-0012 | jmorency@faircroft.com

About Jean Morency: Jean Morency is the Director of Sales at Homes by Faircroft, bringing more than 16 years of sales experience and a background in executive sales, finance and lending. His experience gives him a well-rounded perspective on the many moving parts involved in taking a home from contract to closing. In his role at Homes by Faircroft, Jean works closely with buyers, Realtors, lenders and the sales team to help keep the homebuying process moving forward.