Market news · November 4, 2026

Market note, November 4, 2026: the new appraisal report is live, and it looks at your remodel room by room

A quiet data day, with one change that touches every remodeler whose client later refinances or sells. Since Monday, appraisers working on Fannie Mae and Freddie Mac loans file a new kind of report, and it records the kitchens, baths and floors you redid in more detail than before.

Nov 2

The day the new appraisal standard, UAD 3.6, became mandatory for new appraisal reports on Fannie Mae and Freddie Mac loans (Freddie Mac, 2026)

Fannie Mae and Freddie Mac, November 2: UAD 3.6 is mandatory

Freddie Mac says UAD 3.6, the new Uniform Appraisal Dataset, is mandatory for all new appraisal reports submitted to its system on or after November 2, 2026. It replaces the old appraisal forms (the familiar 1004 and others) with one flexible report that changes with the property. Lenders that are not ready can ask for a temporary exception.

What matters for a remodeler is how updates are recorded. The new report has an update status for each kitchen and each bath, and an overall update status for bathrooms and for flooring. Freddie Mac says these room and component statuses are there to support the appraiser's condition and quality ratings. The rating scale itself did not change, but its definitions were rewritten, and there are now separate interior and exterior ratings when the two differ a lot.

NAHB calls it one of the biggest changes to residential appraisal reporting in more than a decade, and says it captures features that were missed or reported unevenly before. NAHB is also clear: a clearer picture of the home is not a guaranteed higher value.

Why a small contractor should care, and what to do this week

Some of your clients pay for a remodel with a refinance, or sell a few years later. In both cases an appraiser walks the house and decides how updated each kitchen and bath is. If the homeowner cannot say what was done and when, your work can be undercounted, and the client remembers that.

This week: for every job you finish, give the client a short record of the work. Room by room, what was replaced (cabinets, counters, tile, fixtures, flooring), the finish date, the permit number if there was one, and before and after photos. It takes ten minutes at closeout and makes you the contractor whose work is easy to prove. For jobs that closed this year, send it now.

One caution: how a lender or an appraiser values a remodel is their call. Do not promise a client a higher appraisal.

Where WorkTime CRM helps with this

Every photo in WorkTime CRM belongs to a project, and the client portal shows the client the photos you put on the job, along with the schedule and payments, by a link with no password. Shoot the before and after photos into the project, and the homeowner can open them again when the appraiser asks.

Questions

Does this change the appraisal on loans that were already done?+

No. The mandate is for new appraisal reports submitted on or after November 2, 2026. Some lenders asked for a temporary exception and may still use the old format for a while.

Will my remodel now appraise higher?+

Not automatically. The new report records updates in more detail, but value is the appraiser's opinion. NAHB says the change gives a clearer picture, not a guaranteed higher value.

What should the record of the work include?+

What was done in each room, the materials, the finish date, permit numbers and before and after photos. Keep it plain and factual. A lender or appraiser decides how to use it.

Sources

💬 Discuss this article

Comments, likes and Ivan's answers live on the original page.

Open the comments →

Work Time CRM

Every lead gets an answer: AI on the phone, estimates from a photo, payments and the whole job in one app.

Try 7 days free →About the CRM