Appraisals Are Changing: A Conversation with Brady Spangler of Mortgage Company Rate

Appraisal reports are getting their biggest update in years, and it becomes mandatory on November 2, 2026. Fannie Mae and Freddie Mac are rolling out UAD 3.6, a new reporting format that captures more detailed, standardized property data.

To help Maui Buyers and Sellers prepare, I sat down with Brady Spangler, Branch Manager and SVP of Mortgage Lending with Rate, here on Maui. Here are his answers to the five questions clients ask most.

1. What is UAD 3.6, in simple terms?

Brady: "It's a new appraisal reporting format being rolled out by Fannie Mae and Freddie Mac. The goal is more detailed, standardized property data. In simple terms: more detail, better data, and a very different-looking appraisal report." For instance, you will see new terms being used.  Instead of location, the new term is site influence, or another example is gross living area (GLA) will now become finished area above grade.

Brady notes the appraisal process itself is the same. What changes, is how the findings are reported.

2. When does it start?

Brady: "UAD 3.6 becomes mandatory on November 2, 2026, for new appraisal reports submitted to Fannie Mae and Freddie Mac. You may see it sooner, though. Lenders are already using the new format."

If you are under contract this fall, ask your lender which format your appraisal will use.

3. Will my appraisal take longer?

Brady: "During the transition, it’s possible, as Appraisers will capture more information about rooms, levels and areas, renovations and improvements, amenities and features, site characteristics, and overall condition. That means they may spend more time at the property. A longer visit doesn't mean something is wrong. There's simply more to document."

He adds that appraisers, lenders, and underwriting teams are all adapting to new workflows. His advice: build in reasonable time and involve your lender early to help keep your closing on schedule.

When working with Buyers, I always call the lender prior to preparing their offer to ensure the timeline I use is realistic from a lender's perspective.

4. I'm selling. How do I prepare?

Brady: "Details matter. Keep good records of your home's improvements. The more accurate the information, the better."

Specific beats general. Instead of "kitchen updated," provide:

•        Kitchen remodeled in 2024
•        New cabinets and countertops
•        HVAC replaced in 2022
•        Roof replaced in 2019

Brady also recommends putting together an appraisal packet. Your listing agent can assemble improvement history, relevant property documents, comparable sales with context, and important details not obvious in the MLS.

For Maui condos and homes, that includes features like ocean views, solar and air conditioning upgrades, and recent renovations.

5. Does this change who decides my property's value?

Brady: "No, it’s the same appraisal process with a new reporting format. The distinction is important: agents provide the facts. Appraisers determine the value."

That is why accurate MLS data matters. Today's listing can become tomorrow's comparable sale, so agents should be specific about renovations and timing, property condition, seller concessions, significant repairs, and unique circumstances of the sale.

Seller Prep Checklist

Use this list before your home goes on the market. Each item helps the appraiser document your home accurately under UAD 3.6.

☐  Gather records of every improvement, with the year it was completed

☐  Describe upgrades and features specifically ("Kitchen remodeled in 2024," not "kitchen updated")

☐  List major replacements and their dates, such as roof, solar and HVAC

☐  Note features not obvious in the MLS, such as materials, views or air conditioning upgrades

☐  Build an appraisal packet with your listing agent: improvement history, documents, and comparable sales with context

☐  Plan for a longer appraisal visit and keep the property accessible

☐  Build reasonable time into your contract timeline for the appraisal

The Bottom Line

Preparation is the simplest path to a smooth closing under UAD 3.6. Sellers, start your improvement records today. Buyers, connect with your lender before you write an offer.

Thinking of purchasing property and want to speak with a lender first?  Reach out to Brady Spangler, Branch Manager, SVP of Mortgage Lending, Rate: brady@rate.com · (808) 264-3798 · rate.com/bradyspangler · NMLS #205611

Planning a move on Maui? I'm happy to help you identify your options and help you find a special spot to call home.

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