Selling
New Appraisal Rules 2026: What Washington Home Sellers Need to Know
As of November 2, 2026, most conventional home loans use a redesigned appraisal report that collects more than 900 data points. Here’s what it changes for your square footage, your ADU and your price.
By Carly GrundmannREALTOR® · SRES®, Windermere Professional Partners
Published 8 min read
In this article
- Key takeaways
- What changed with the appraisal report in 2026?
- Why did Fannie Mae and Freddie Mac change it?
- How is square footage measured under the new rules?
- How are ADUs appraised now?
- What should I do before appraisal day?
- What can I do if the appraisal comes in low?
- Seller appraisal checklist before you list
- Selling in Gig Harbor, Tacoma or the South Sound?
The new appraisal rules for 2026 took effect on November 2. Most sellers will find out mid-escrow. The report behind most conventional home loans now collects more than 900 data points, up from about 190. That changes how your square footage, your ADU and your home’s condition show up on paper.
I’m not an appraiser. I’ve bought and sold more than 100 properties with my own money on the line, and every one had to clear an appraisal. Investors plan for that checkpoint before they make an offer. Here’s how to do the same as a seller in Gig Harbor, Tacoma and the South Sound.
Key takeaways#
- Since November 2, 2026, new conventional appraisals sold to Fannie Mae and Freddie Mac use one redesigned report built on the UAD 3.6 data standard.
- The report tracks 900+ data points, up from about 190. The way value is reached, comparing your home to recent sales, stayed largely the same.
- Any level even partly below ground is reported as basement, not above-grade living area.
- ADUs get their own section with their own square footage, rooms and condition.
- Appraisal visits are running longer, and interior and exterior condition are rated separately.
- If an appraisal comes in low, the buyer can request a formal reconsideration of value through the lender.
What changed with the appraisal report in 2026?#
Fannie Mae and Freddie Mac replaced the appraisal forms used for about 20 years, including the familiar 1004, with one redesigned Uniform Residential Appraisal Report (URAR). The data standard behind it is called UAD 3.6. It’s national, so it applies in Washington the same way it applies everywhere else.
| Date | What happened |
|---|---|
| January 26, 2026 | Any lender could start using the new report |
| November 2, 2026 | Required for new conventional appraisals sold to Fannie Mae and Freddie Mac |
| May 19, 2027 | Lenders with an approved exception can use the old format until this date |
| FHA and VA | FHA accepts both formats and has not set a required date. VA has not announced a date. |
The deadline follows the date the appraisal is submitted, not your contract date. Ask the lender which format your buyer’s appraisal will use, so you’re comparing apples to apples if a number comes back off.
Why did Fannie Mae and Freddie Mac change it?#
They want the same structured data on every home. The old forms left a lot to free-form comments, which are hard to analyze across millions of loans. The new report swaps most of that for standard fields.
Not every loan gets a full appraisal. Depending on the loan, Fannie Mae may accept the lender’s value with no appraisal, send a property data collector to photograph and measure the home, or require a desktop, hybrid or traditional appraisal. A property data collector is hired by the lender and doesn’t set the value. Treat that visit like an appraisal visit.
How is square footage measured under the new rules?#
Appraisers on these loans measure with the ANSI Z765 standard, adopted by Fannie Mae in 2022 and Freddie Mac in 2023. The new report applies it level by level, which can shrink a listing’s square footage on paper.
- Below grade: any level even partly below ground is a basement, however nicely it’s finished. It’s reported separately from above-grade living area.
- 7 feet: the minimum ceiling height for finished area to count.
- Sloped ceilings: at least half the room must reach 7 feet, and nothing under 5 feet counts.
- Outside walls: area is measured to the exterior walls. Open-to-below spaces like two-story foyers aren’t counted twice.
The South Sound homes that feel this most: split-levels, daylight basements on Gig Harbor and Tacoma slopes, bonus rooms with knee walls and story-and-a-half homes. If your listing says 2,400 square feet and 900 of it is a daylight basement, the appraisal will report 1,500 above grade. Price and market the home the way it will be measured.
How are ADUs appraised now?#
An ADU (accessory dwelling unit) gets its own section in the new report, with its own area, rooms, bedrooms, bathrooms and condition. A flat “+$50,000 for the ADU” adjustment with nothing behind it is much harder to support.
| Loan type | ADU rule |
|---|---|
| Fannie Mae | One ADU, on a one-unit home only |
| Freddie Mac | One ADU, on a 1-, 2- or 3-unit property |
| Two or more ADUs | Not eligible with either |
The Washington catch: HB 1337 requires cities and counties planning under the Growth Management Act to allow two ADUs per lot in urban growth areas. The state allows two. Conventional lenders finance one. A second ADU can add rent on paper while shrinking the pool of buyers who can use a standard loan.
Have this ready: permits and final inspection, the ADU’s square footage, bedroom and bath count, rental history, and septic capacity if you’re not on sewer.
What should I do before appraisal day?#
Plan for a longer visit. With hundreds more fields to fill in, appraisers are spending more time on site while they learn the new report. Exterior and interior condition are now rated separately, each kitchen and bath is rated on its own, and energy features, disaster mitigation and broadband are now reported.
- Unlock every room, closet, outbuilding, attic and crawlspace hatch
- Plan for pets and work schedules
- Clear paths to the electrical panel, water heater and furnace
- Turn on lights and open blinds for photos
- Hand the appraiser a one-page sheet: upgrades with dates and costs, permits, energy features and recent sales you think compare
What can I do if the appraisal comes in low?#
A low appraisal opens a negotiation. Since 2024, Fannie Mae and Freddie Mac have required lenders to have a formal reconsideration of value (ROV) process. The buyer, as the borrower, can request one when the report has errors or missed better comparable sales.
A strong ROV request names the specific errors, such as wrong square footage, a missed bedroom or the wrong condition rating. It offers better comparable sales with why each one fits, and includes your upgrade sheet and permits.
| Path | Best when |
|---|---|
| Challenge it (ROV) | There are clear errors or stronger comparable sales |
| Renegotiate the price | The appraisal is reasonable |
| Buyer covers the gap | The buyer has cash reserves and wants the home |
| Split the difference | Both sides want to close |
The new report makes errors easier to spot. Square footage by level, room counts and condition ratings are listed as data, so a mismeasured basement or a missing bathroom stands out.
Seller appraisal checklist before you list#
- Compare listing, county and ANSI square footage, split by level
- Flag rooms with ceilings under 7 feet
- Gather ADU permits, final inspection and rental history
- Pull septic or sewer records and the permitted bedroom count
- Build an upgrade sheet with dates and costs
- Fix curb-side items: roof moss, gutters, paint, trim
- Ask which report format the lender will order
- Know the ROV process before the report arrives
Want this as a printable checklist? Download The New Appraisal Guide, November 2026 Edition.
Frequently asked questions
When did the new appraisal rules take effect?
November 2, 2026, for new conventional appraisals sold to Fannie Mae and Freddie Mac. Some lenders with an approved exception can use the old format until May 19, 2027.
What is UAD 3.6?
UAD 3.6 is the data standard behind the redesigned Uniform Residential Appraisal Report. It replaces the old appraisal forms, including the 1004, with one report that collects more than 900 standardized data points.
Does the new appraisal report lower my home’s value?
Not by itself. The valuation method barely changed. Value only shifts where the measuring rules change what your home is credited with, such as a finished basement or a low-ceiling bonus room.
Is a finished basement counted as living area?
It’s reported separately as below-grade area, even when it’s fully finished. It still adds value, but it isn’t counted in above-grade square footage.
Can I sell a home with two ADUs in Washington?
Yes. Conventional Fannie Mae and Freddie Mac loans won’t finance a home with two or more ADUs, so plan your pricing and buyer pool around cash, portfolio or other loan types.
Do appraisals take longer now?
Often, yes. The new report has hundreds more fields, so appraisers are spending more time on site while they learn it. Plan for pets, schedules and access to every room.
Who can request a reconsideration of value?
The buyer, as the borrower, requests it through their lender. The lender must explain the process when the appraisal is delivered.
Selling in Gig Harbor, Tacoma or the South Sound?#
Investors plan for the appraisal before they make an offer. I bring that same approach to your sale. Send me your address and I’ll pull the county records and walk the home with these rules in mind before you list.
Download the free guide on the Appraisal Guide page, contact me or call 253-303-7323.
Carly Grundmann, REALTOR®, SRES® · WA License #24000091 · Windermere Professional Partners, Gig Harbor. Carly is a licensed real estate broker, not an appraiser. This post is general information, accurate as of November 2026. It is not appraisal, lending, legal or tax advice. Equal Housing Opportunity.
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