New Appraisal Rules Idaho 2026 | UAD 3.6 Realtor Guide New Appraisal Rules for Idaho in 2026 and Beyond: UAD 3.6 Guide for Realtors The new appraisal rules for Idaho in 2026 and beyond represent one of the biggest changes to conventional residential appraisal reporting in years. Fannie Mae and Freddie Mac are transitioning the mortgage industry to Uniform Appraisal Dataset 3.6, commonly called UAD 3.6, along with the redesigned Uniform Residential Appraisal Report, or URAR. If you are an Idaho Realtor, this is much more than an appraiser getting a new form. The new appraisal is becoming significantly more structured, detailed and data-driven. Property condition, finished areas, kitchens and bathrooms, flooring, garages, accessory dwelling units, site influences, views, concessions and other property characteristics can be captured in considerably more detail. For Realtors in Boise, Meridian, Nampa, Caldwell, Eagle, Kuna, Middleton, Star, Mountain Home and throughout Idaho, the practical question is not simply, "What is UAD 3.6?" The better questions are: What will appraisers look at differently? What should listing agents do before the appraiser arrives? What should buyer’s agents look for before writing an offer? Could property condition affect financing? How will basements, garages, ADUs and solar be handled? What happens if the appraisal contains a legitimate error? This guide answers those questions and includes my three-part UAD 3.6 video series for Idaho real estate professionals. Important UAD 3.6 Dates: UAD 3.6 has been available for broad production since January 26, 2026. Beginning November 2, 2026, all new appraisal reports initially submitted to the Uniform Collateral Data Portal, or UCDP, must use UAD 3.6. Some lenders we work with are encouraging an earlier transition, including around September 1, so appraisals already moving through the pipeline are completed and submitted before the mandate. What Is UAD 3.6? The Uniform Appraisal Dataset is the standardized appraisal information that Fannie Mae and Freddie Mac receive electronically through UCDP. The legacy appraisal system relied on multiple familiar forms, such as the traditional 1004, along with comments and addenda when additional information was necessary. UAD 3.6 moves the industry toward a single flexible and dynamic reporting structure designed to adapt to the property and assignment. Freddie Mac describes the redesign as a move toward a data-driven, dynamic reporting structure that captures property and market information more consistently and reduces the industry’s reliance on free-form commentary. In plain English: UAD 3.6 is not simply a new appraisal form. It changes how the property tells its story. When Does UAD 3.6 Become Mandatory? UAD 3.6 became available for broad production on January 26, 2026. During the transition period, lenders can submit eligible appraisals using UAD 2.6 or UAD 3.6. Beginning November 2, 2026, however, all new appraisal reports initially submitted to UCDP must use UAD 3.6. This deadline is based on the initial UCDP submission date, not the loan application date or the effective date of the appraisal. That distinction is important. It is also why some lenders are asking mortgage companies and appraisal partners to transition earlier. Fannie Mae and Freddie Mac have encouraged lenders to manage their pipelines and transition before the mandate rather than waiting until November 2. If a UAD 2.6 appraisal was successfully submitted before the mandate, certain revisions to that report can continue to be submitted using UAD 2.6 during the legacy retirement period, which is currently scheduled to end on May 3, 2027. After that date, the UAD 2.6 pipeline is fully retired. Video 1: 10 Things Listing Agents Need to Know About the New Conventional Appraisal This first video provides the broad overview of what I believe Idaho listing agents need to understand about UAD 3.6. <br /> 10 UAD 3.6 Changes Idaho Listing Agents Should Understand 1. MLS Property Information Needs to Be Accurate Listing agents should be careful about simply copying information from a previous MLS listing. Verify items such as: Finished square footage Above-grade versus below-grade areas Bedroom and bathroom counts ADUs Additions Converted garages Vehicle storage Other unusual property characteristics Appraisers have always been responsible for independently analyzing the property, but UAD 3.6 provides considerably more structured places for that property information to be reported. The appraiser also researches the subject property’s recent listing history. For example, suppose a Boise property was originally listed for $650,000, reduced to $625,000, withdrawn, and then relisted several weeks later for $675,000. A new MLS number does not erase the property’s history. 2. Understand Above-Grade, Below-Grade and Nonstandard Finished Areas This is an area where Realtors and sellers frequently become confused. An egress window does not automatically turn a basement into above-grade finished area. Egress requirements and appraisal measurement requirements address different issues. Under applicable Fannie Mae appraisal measurement requirements, if any portion of a level is below grade, the level is generally reported as below grade. That does not mean the area is worthless. It means it is reported separately from the home’s finished above-grade area. 3. The 7-Foot Ceiling-Height Rule Matters The ANSI measurement standard generally requires finished areas to have a ceiling height of at least 7 feet, subject to specific exceptions for items such as beams, ducts and certain sloped ceilings. One of the useful changes with UAD 3.6 is the ability to identify certain finished spaces as nonstandard finished area. For example, imagine a finished Idaho basement containing 1,500 square feet. 900 square feet meets the applicable ceiling-height standard. 600 square feet is finished but does not meet the standard ceiling-height requirement. Those areas may be reported separately. The important Realtor takeaway is: Nonstandard finished area does not automatically mean zero value. Reporting treatment and contributory market value are two different questions. 4. "Garage/Carport" Becomes Vehicle Storage UAD 3.6 uses the term Vehicle Storage. I want to make one point very clear because there is already misinformation circulating about the new appraisal: UAD 3.6 does not create a new universal Fannie Mae minimum width or depth for a garage. Functional utility and market reaction, however, still matter. This is especially relevant with some newer construction where builders have reduced garage dimensions. If something is advertised as a two-car garage but two typical vehicles can barely use the space as intended, the words "two-car garage" in the MLS do not necessarily settle the question of functional utility. When vehicle storage is unusually tight, I believe providing actual dimensions is good practice. 5. Maintenance Is Not Necessarily an Upgrade Sellers frequently tell Realtors: "We put $40,000 into this house." The next question should be: What did you actually do? Replacing an aging roof, failed water heater, worn-out furnace or deteriorated flooring can be important maintenance. That does not automatically mean the property was substantially remodeled. A much more useful improvement list looks like this: 2022: Roof replaced 2023: HVAC replaced 2024: Kitchen remodeled - cabinets, countertops, flooring and appliances 2025: Primary bathroom remodeled Specific facts are more useful to an appraiser than broad marketing claims such as "fully updated." 6. The Remodeled Kitchen Does Not Tell the Story of the Entire House This may be one of the biggest wake-up calls for Realtors. UAD 3.6 contains more detailed information about condition and updates involving kitchens, bathrooms, flooring and other components of the property. Imagine a Meridian home where: The kitchen has new hardwood flooring. There are new cabinets and quartz countertops. The primary bathroom was remodeled. The secondary bathroom is original. The bedrooms still have 20-year-old carpet. The HVAC system is aging. The roof is approaching the end of its useful life. The beautiful kitchen does not erase the condition of the rest of the house. It is also important not to overstate this change. Every bedroom does not receive its own separate Q1-Q6 quality rating. The formal Condition and Quality ratings remain broader property ratings, while UAD 3.6 provides more detailed component-level information to support the appraiser’s analysis. 7. Expect More Interior Photographs The new photo requirements are another reason Realtors should prepare the entire property rather than only the rooms featured in the MLS. For applicable traditional UAD 3.6 appraisal assignments, required or conditionally required photos can include: All kitchens All bathrooms Main living areas All bedrooms Applicable below-grade finished rooms Applicable below-grade unfinished rooms Physical defects or deficiencies when present Examples of recent remodeling when applicable Vehicle storage Views affecting value or marketability when applicable Your MLS photographer may skip the bedroom with the ugly carpet. The appraiser may not. 8. Deferred Maintenance Can Be Documented More Clearly UAD 3.6 includes more structured reporting of defects, damage and deficiencies. Listing agents should walk the property before appraisal day and look for obvious items such as: Worn flooring Roof deterioration Leaks Damaged siding Broken fencing Damaged windows Unfinished projects Other visible maintenance concerns This does not mean every scratch, weed or worn carpet automatically causes a specific dollar adjustment. It means the property’s condition can be documented in a more structured way. 9. The Appraisal Starts at the Curb Do not spend all of the seller’s time and money staging the kitchen while ignoring the exterior of the property. The appraiser evaluates the whole property. That may include: Front-yard condition Backyard condition Fencing Exterior maintenance Debris Outbuildings Site characteristics A few weeds do not automatically reduce an appraisal. But significant exterior deferred maintenance or obvious property-condition issues do not disappear because they were left out of the MLS photographs. 10. Views and Site Influences Are Reported in Greater Detail Busy streets and views have always mattered when buyers and the market react to them. UAD 3.6 gives appraisers more structured ways to describe those characteristics. Idaho examples might include: An Eagle home with a Boise Foothills view A Boise Bench home with a city or mountain view A Meridian property backing to a major arterial A property adjacent to commercial development Power-line influences Open-space influences Water or other significant views A view may also be described more specifically based on characteristics such as whether it is full, partial or seasonal. The important distinction is that these concepts are not suddenly becoming relevant because of UAD 3.6. The reporting is becoming more detailed and structured. Video 2: Before the Appraiser Arrives - 10 Things Idaho Listing Agents Should Do Once Realtors understand what UAD 3.6 changes, the next question is practical: What should a listing agent actually do before the appraiser arrives? <br /> UAD 3.6 Pre-Appraisal Checklist for Listing Agents Audit the MLS information. Verify property characteristics rather than automatically copying the prior listing. Walk the entire property. Look beyond the rooms used for marketing photographs. Make relevant areas accessible. Bedrooms, bathrooms, garages, basement areas and applicable outbuildings should be accessible when required for the appraisal assignment. Understand the basement. Know what is above grade, below grade and potentially nonstandard finished area. Verify Vehicle Storage. Measure unusually small garages or unusual configurations when appropriate. Identify ADUs, additions and converted spaces. Do not market something into becoming something it is not. Create a dated improvement list. Tell the appraiser what was actually done and when. Know the roof age. UAD 3.6 contains a specific data element for estimated roof age. Find the solar documentation. Owned, financed, leased and power-purchase-agreement systems can have different underwriting and appraisal implications. Provide a concise factual property package. Give the appraiser accurate information without attempting to direct the appraiser’s independent opinion of value. What Should Be in a Listing Agent’s Appraiser Package? I recommend keeping it short and factual. Dated improvement list Roof replacement year, if known Major system replacement dates, if known Permits or final approvals when relevant and available ADU information Addition or converted-area information Solar ownership or financing documentation HOA information when relevant Unusual garage or vehicle-storage dimensions Unique property information that may not be obvious during the inspection The objective is not to tell the appraiser: "We need this property to appraise for $650,000." The objective is: "Here are accurate facts about this property that may be useful during your analysis." What About ADUs, Additions and Converted Garages? UAD 3.6 provides more structured reporting for accessory dwelling units and converted areas. A second kitchen does not automatically create an ADU. An ADU generally needs to provide independent facilities for: Living Sleeping Cooking Bathroom use Examples that may require additional analysis include: Basement apartments Detached casitas Converted garages Apartments over shops Detached finished structures Unpermitted additions An addition lacking a required permit is not automatically assigned zero value simply because a permit cannot be produced. Under current Fannie Mae UAD 3.6 policy, when an appraiser identifies an addition that lacks a required permit, the appraiser addresses the quality and appearance of the work and any impact it may have on market value. UAD 3.6 for Idaho Buyer’s Agents UAD 3.6 is not just a listing-agent issue. Buyer’s agents should understand how the new appraisal may interact with the property and the purchase contract before the buyer becomes deeply committed to the transaction. Video 3: 10 Things Buyer’s Agents Need to Know About the New Conventional Appraisal <br /> 10 Appraisal Issues Buyer’s Agents Should Watch 1. MLS Square Footage May Not Equal Appraisal Finished Area If your buyer is paying a premium because a listing advertises 3,500 square feet, understand what that 3,500 square feet includes. Some of it may be: Finished above-grade area Finished below-grade area Nonstandard finished area Detached finished area Those are not necessarily reported the same way in the appraisal. 2. The Appraiser Receives the Sales Contract The appraiser receives the applicable ratified sales contract and addenda. Transaction information may include: Seller-paid closing costs Interest-rate buydowns Credits Below-market financing Certain HOA payments Other transaction incentives Applicable personal property Buyer’s agents should write the transaction terms clearly and accurately. 3. Seller Concessions Are Not Automatically Adjusted Dollar-for-Dollar This is one of the most important misconceptions for Realtors to understand. A $15,000 seller concession does NOT automatically mean a $15,000 reduction in appraised value. The appraiser analyzes the market’s reaction to the concession. A dollar-for-dollar adjustment may be appropriate when supported by market evidence. It should not simply be a mechanical deduction because a concession exists. 4. Look Beyond the Pretty Kitchen The same lesson applies to buyers. A remodeled kitchen may be beautiful while the rest of the property tells a different condition story. Look at: Bedroom flooring Secondary bathrooms Roof condition HVAC age Exterior condition Deferred maintenance 5. Property Condition Can Affect Financing - Not Just Value Some property-condition issues can become more than negotiation problems. Under Fannie Mae’s condition framework, a C5 property can contain significant wear or deferred maintenance while remaining functional. A C6 property involves severe deficiencies affecting soundness or structural integrity. A property rated C6 is not eligible for delivery to Fannie Mae until the required repairs are completed and the property reaches at least C5 condition. That means sometimes the biggest appraisal problem is not: "Did the value come in?" It is: "Can the property qualify for the financing in its current condition?" 6. Functional Utility Still Matters UAD 3.6 does not create a universal minimum garage size, but functional utility continues to matter. Other examples might include: Having to walk through one bedroom to enter another bedroom Very unusual floor plans Converted garages Vehicle-storage areas that function differently than marketed Unusual additions The question is ultimately how typical buyers in that market react to the feature. 7. A Second Kitchen Does Not Automatically Mean ADU Buyer’s agents should investigate an advertised "ADU" before allowing the buyer to pay a premium based on that description. A second kitchen by itself does not automatically create an accessory dwelling unit. If the property contains a basement suite, detached casita, apartment above a shop or converted garage, it may be a good idea to discuss the property with the lender before writing the offer. 8. Pay Attention to the Site, Not Just the House A beautiful house may still have significant external influences. Examples include: Busy arterial streets Commercial development Power lines Industrial influences Views Open space Water If your buyer notices the traffic noise in the backyard, the market may notice it too. 9. Get Solar Documentation Early Not all solar systems are treated the same. A system may be: Owned outright Separately financed Leased Subject to a power-purchase agreement, or PPA Under Fannie Mae policy, solar panels leased from or owned by a third party under certain power-purchase arrangements are treated as personal property and are not included in the appraised value of the real estate. Do not wait until the week of closing to discover how the solar system is owned. 10. If the Appraisal Is Wrong, Use Facts - Not Frustration If an appraisal contains a legitimate factual problem, Fannie Mae requires lenders to maintain a borrower-initiated Reconsideration of Value, or ROV, process. A useful ROV identifies things such as: A factual error Unsupported information An omitted property characteristic Relevant market data More appropriate comparable sales Fannie Mae’s current borrower-initiated ROV requirements allow additional data or comparable properties, generally not to exceed five comparable properties. An ROV is not simply: "We don’t like the value." It needs to explain what is inaccurate, unsupported or incomplete. For more information, visit our Idaho Appraisal Reconsideration of Value Guide. What’s Actually New Under UAD 3.6 - and What Isn’t? This is an important distinction because there is already a lot of confusion about the new appraisal. These Concepts Are Not Necessarily New ANSI measurement standards Ceiling-height requirements Below-grade reporting Deferred maintenance Busy streets affecting marketability Views affecting market reaction Functional utility Seller concessions Appraisers reviewing sales contracts What UAD 3.6 Changes The significant change is the amount, structure, consistency and specificity of the data being collected and reported. Instead of much of the property story being buried in broad descriptions or free-form comments, UAD 3.6 gives appraisers more defined places to report the property’s individual characteristics. That is why I keep coming back to this point: The house itself is going to tell a much more detailed story than the MLS remarks. What Should Idaho Realtors Do Right Now? Listing agents should begin incorporating UAD 3.6 preparation into their listing process. Buyer’s agents should start identifying appraisal and financing questions earlier - ideally before the offer is written. If a property has an unusual feature such as: A low-ceiling basement An unusual garage A converted garage An ADU A detached living area Significant deferred maintenance Solar panels A major seller concession An unusual site influence talking to the lender early can prevent a lot of headaches later. Frequently Asked Questions About UAD 3.6 When does UAD 3.6 become mandatory? Fannie Mae and Freddie Mac require UAD 3.6 for all new appraisal reports initially submitted to UCDP on or after November 2, 2026. Why are some lenders talking about September 1? September 1 is not the nationwide Fannie Mae or Freddie Mac mandate. Some lenders are encouraging an earlier transition so appraisals already moving through the pipeline can be completed and submitted before the November 2 deadline. Is the old 1004 appraisal going away? The GSE forms redesign replaces the legacy collection of appraisal forms with the new dynamic Uniform Residential Appraisal Report structure used with UAD 3.6. Does every bedroom receive its own Q1-Q6 quality rating? No. Realtors should not describe UAD 3.6 as assigning every bedroom its own Q1-Q6 rating. The formal Condition and Quality ratings remain broader ratings, while UAD 3.6 adds more detailed component-level information involving kitchens, bathrooms, flooring and other property characteristics. Does an egress window make a basement above-grade finished area? No. Egress requirements and appraisal measurement requirements address different issues. A level that is partially below grade is generally reported as below-grade area under the applicable appraisal measurement requirements. Does space with a ceiling below 7 feet have zero value? No. Certain finished areas that do not meet the applicable standard measurement requirements can be reported separately as nonstandard finished area. The appraiser can still analyze whether that space has contributory market value. Is there a new minimum garage size under UAD 3.6? We have not identified a new universal Fannie Mae or Freddie Mac minimum garage width or depth created by UAD 3.6. Functional utility and the market’s reaction to the vehicle-storage configuration can still matter. Does a $15,000 seller concession automatically reduce the appraisal by $15,000? No. The appraiser analyzes the market’s reaction to sales and financing concessions. A dollar-for-dollar adjustment is appropriate only when supported by the market evidence. Does a second kitchen automatically make a property an ADU? No. An ADU generally needs independent living, sleeping, cooking and bathroom facilities and must meet applicable appraisal and underwriting requirements. Are leased solar panels included in appraised value? Solar panels leased from or owned by certain third parties under a power-purchase agreement are treated as personal property under Fannie Mae policy and are not included in the appraised value of the real estate. What is the best thing a listing agent can give an appraiser? A short factual property-information package containing accurate improvement dates, roof age when known, permits when relevant, ADU or converted-area information, solar information and other unusual property characteristics can be useful. The goal should be to provide facts, not influence the appraiser’s independent value conclusion. What should I do if the appraisal contains a legitimate error? Contact the lender and discuss whether a formal Reconsideration of Value is appropriate. A strong ROV identifies specific factual errors, unsupported analysis or relevant additional market data rather than simply disagreeing with the value. Official UAD 3.6 Sources and Further Reading I strongly encourage Realtors who want to go deeper to review the official Fannie Mae and Freddie Mac guidance rather than relying only on social media summaries. Fannie Mae - Uniform Appraisal Dataset 3.6 Resources Freddie Mac - Uniform Appraisal Dataset 3.6 Resources Freddie Mac - UAD 3.6 and Forms Redesign FAQ Fannie Mae - UAD 3.6 Transition Timeline and FAQs Fannie Mae - UAD 3.6 URAR Job Aids, Photo Requirements and ANSI Guidance More Appraisal and Realtor Education Appraisal Reconsideration of Value - Idaho Guide Mortgage and Continuing Education Resources for Idaho Realtors Idaho Mortgage Resources - 1st Choice Mortgage Final Takeaway for Idaho Realtors UAD 3.6 is going to be a significant shift for the conventional mortgage and appraisal industry. It is not something Realtors need to panic about. It is something we need to prepare for. Listing agents can help by providing accurate property information and identifying property-condition issues before appraisal day. Buyer’s agents can help by identifying unusual property and contract issues before the buyer is deeply committed to the transaction. And when an unusual appraisal situation arises, talking to the lender early is usually better than trying to solve the problem after the appraisal is complete. If you are an Idaho Realtor and you have a question involving a basement, ADU, garage, solar agreement, seller concession, condition issue or unusual property, give 1st Choice Mortgage a call before you list the property or write the offer. We are always happy to help. About the Author Gerald Robinson, CRMS, NMLS #4475, is President and CEO of 1st Choice Mortgage Company, LLC, Company NMLS #380736. 1st Choice Mortgage is a licensed Idaho mortgage broker that has served the Treasure Valley and communities across Idaho and Oregon since 1992. Gerald has worked in residential mortgage lending since 2002 - more than two decades - and has helped guide thousands of Idaho home loans to the closing table. He specializes in VA, FHA, conventional, USDA and Idaho Housing financing. Gerald is also an Idaho Real Estate Commission (IREC) certified continuing-education instructor. He teaches approved CE classes for Idaho real estate professionals, including a course on VA financing, and regularly provides mortgage, appraisal and loan-program education to agents throughout the state. Learn more on our Idaho Realtor continuing education page. 1st Choice Mortgage Company, LLC Company NMLS #380736 3023 E Copper Point Dr., Suite 101 Meridian, ID 83642 (208) 375-5626 Licensed in Idaho and Oregon 1st Choice Mortgage Company, LLC is an Equal Housing Opportunity Lender. 1st Choice Mortgage Company, LLC is not affiliated with Fannie Mae, Freddie Mac, FHA, HUD or the Department of Veterans Affairs. Mortgage and appraisal guidelines are subject to change. Always verify current requirements for the specific loan, lender and property involved. Appraisal Reconsideration of Value Appraisal Rules 2026 best mortgage lender Buyer Agent Tips Conventional Appraisal experienced mortgage lender Fannie Mae Freddie Mac Home Appraisal Idaho Real Estate Idaho Realtors Listing Agent Tips mortgage expert UAD 3.6 URAR 1st Choice Mortgage Company, LLC Click to Call or Text: (208) 375-5626 This entry has 0 replies Comments are closed.
New Appraisal Rules for Idaho in 2026 and Beyond: UAD 3.6 Guide for Realtors The new appraisal rules for Idaho in 2026 and beyond represent one of the biggest changes to conventional residential appraisal reporting in years. Fannie Mae and Freddie Mac are transitioning the mortgage industry to Uniform Appraisal Dataset 3.6, commonly called UAD 3.6, along with the redesigned Uniform Residential Appraisal Report, or URAR. If you are an Idaho Realtor, this is much more than an appraiser getting a new form. The new appraisal is becoming significantly more structured, detailed and data-driven. Property condition, finished areas, kitchens and bathrooms, flooring, garages, accessory dwelling units, site influences, views, concessions and other property characteristics can be captured in considerably more detail. For Realtors in Boise, Meridian, Nampa, Caldwell, Eagle, Kuna, Middleton, Star, Mountain Home and throughout Idaho, the practical question is not simply, "What is UAD 3.6?" The better questions are: What will appraisers look at differently? What should listing agents do before the appraiser arrives? What should buyer’s agents look for before writing an offer? Could property condition affect financing? How will basements, garages, ADUs and solar be handled? What happens if the appraisal contains a legitimate error? This guide answers those questions and includes my three-part UAD 3.6 video series for Idaho real estate professionals. Important UAD 3.6 Dates: UAD 3.6 has been available for broad production since January 26, 2026. Beginning November 2, 2026, all new appraisal reports initially submitted to the Uniform Collateral Data Portal, or UCDP, must use UAD 3.6. Some lenders we work with are encouraging an earlier transition, including around September 1, so appraisals already moving through the pipeline are completed and submitted before the mandate. What Is UAD 3.6? The Uniform Appraisal Dataset is the standardized appraisal information that Fannie Mae and Freddie Mac receive electronically through UCDP. The legacy appraisal system relied on multiple familiar forms, such as the traditional 1004, along with comments and addenda when additional information was necessary. UAD 3.6 moves the industry toward a single flexible and dynamic reporting structure designed to adapt to the property and assignment. Freddie Mac describes the redesign as a move toward a data-driven, dynamic reporting structure that captures property and market information more consistently and reduces the industry’s reliance on free-form commentary. In plain English: UAD 3.6 is not simply a new appraisal form. It changes how the property tells its story. When Does UAD 3.6 Become Mandatory? UAD 3.6 became available for broad production on January 26, 2026. During the transition period, lenders can submit eligible appraisals using UAD 2.6 or UAD 3.6. Beginning November 2, 2026, however, all new appraisal reports initially submitted to UCDP must use UAD 3.6. This deadline is based on the initial UCDP submission date, not the loan application date or the effective date of the appraisal. That distinction is important. It is also why some lenders are asking mortgage companies and appraisal partners to transition earlier. Fannie Mae and Freddie Mac have encouraged lenders to manage their pipelines and transition before the mandate rather than waiting until November 2. If a UAD 2.6 appraisal was successfully submitted before the mandate, certain revisions to that report can continue to be submitted using UAD 2.6 during the legacy retirement period, which is currently scheduled to end on May 3, 2027. After that date, the UAD 2.6 pipeline is fully retired. Video 1: 10 Things Listing Agents Need to Know About the New Conventional Appraisal This first video provides the broad overview of what I believe Idaho listing agents need to understand about UAD 3.6. <br /> 10 UAD 3.6 Changes Idaho Listing Agents Should Understand 1. MLS Property Information Needs to Be Accurate Listing agents should be careful about simply copying information from a previous MLS listing. Verify items such as: Finished square footage Above-grade versus below-grade areas Bedroom and bathroom counts ADUs Additions Converted garages Vehicle storage Other unusual property characteristics Appraisers have always been responsible for independently analyzing the property, but UAD 3.6 provides considerably more structured places for that property information to be reported. The appraiser also researches the subject property’s recent listing history. For example, suppose a Boise property was originally listed for $650,000, reduced to $625,000, withdrawn, and then relisted several weeks later for $675,000. A new MLS number does not erase the property’s history. 2. Understand Above-Grade, Below-Grade and Nonstandard Finished Areas This is an area where Realtors and sellers frequently become confused. An egress window does not automatically turn a basement into above-grade finished area. Egress requirements and appraisal measurement requirements address different issues. Under applicable Fannie Mae appraisal measurement requirements, if any portion of a level is below grade, the level is generally reported as below grade. That does not mean the area is worthless. It means it is reported separately from the home’s finished above-grade area. 3. The 7-Foot Ceiling-Height Rule Matters The ANSI measurement standard generally requires finished areas to have a ceiling height of at least 7 feet, subject to specific exceptions for items such as beams, ducts and certain sloped ceilings. One of the useful changes with UAD 3.6 is the ability to identify certain finished spaces as nonstandard finished area. For example, imagine a finished Idaho basement containing 1,500 square feet. 900 square feet meets the applicable ceiling-height standard. 600 square feet is finished but does not meet the standard ceiling-height requirement. Those areas may be reported separately. The important Realtor takeaway is: Nonstandard finished area does not automatically mean zero value. Reporting treatment and contributory market value are two different questions. 4. "Garage/Carport" Becomes Vehicle Storage UAD 3.6 uses the term Vehicle Storage. I want to make one point very clear because there is already misinformation circulating about the new appraisal: UAD 3.6 does not create a new universal Fannie Mae minimum width or depth for a garage. Functional utility and market reaction, however, still matter. This is especially relevant with some newer construction where builders have reduced garage dimensions. If something is advertised as a two-car garage but two typical vehicles can barely use the space as intended, the words "two-car garage" in the MLS do not necessarily settle the question of functional utility. When vehicle storage is unusually tight, I believe providing actual dimensions is good practice. 5. Maintenance Is Not Necessarily an Upgrade Sellers frequently tell Realtors: "We put $40,000 into this house." The next question should be: What did you actually do? Replacing an aging roof, failed water heater, worn-out furnace or deteriorated flooring can be important maintenance. That does not automatically mean the property was substantially remodeled. A much more useful improvement list looks like this: 2022: Roof replaced 2023: HVAC replaced 2024: Kitchen remodeled - cabinets, countertops, flooring and appliances 2025: Primary bathroom remodeled Specific facts are more useful to an appraiser than broad marketing claims such as "fully updated." 6. The Remodeled Kitchen Does Not Tell the Story of the Entire House This may be one of the biggest wake-up calls for Realtors. UAD 3.6 contains more detailed information about condition and updates involving kitchens, bathrooms, flooring and other components of the property. Imagine a Meridian home where: The kitchen has new hardwood flooring. There are new cabinets and quartz countertops. The primary bathroom was remodeled. The secondary bathroom is original. The bedrooms still have 20-year-old carpet. The HVAC system is aging. The roof is approaching the end of its useful life. The beautiful kitchen does not erase the condition of the rest of the house. It is also important not to overstate this change. Every bedroom does not receive its own separate Q1-Q6 quality rating. The formal Condition and Quality ratings remain broader property ratings, while UAD 3.6 provides more detailed component-level information to support the appraiser’s analysis. 7. Expect More Interior Photographs The new photo requirements are another reason Realtors should prepare the entire property rather than only the rooms featured in the MLS. For applicable traditional UAD 3.6 appraisal assignments, required or conditionally required photos can include: All kitchens All bathrooms Main living areas All bedrooms Applicable below-grade finished rooms Applicable below-grade unfinished rooms Physical defects or deficiencies when present Examples of recent remodeling when applicable Vehicle storage Views affecting value or marketability when applicable Your MLS photographer may skip the bedroom with the ugly carpet. The appraiser may not. 8. Deferred Maintenance Can Be Documented More Clearly UAD 3.6 includes more structured reporting of defects, damage and deficiencies. Listing agents should walk the property before appraisal day and look for obvious items such as: Worn flooring Roof deterioration Leaks Damaged siding Broken fencing Damaged windows Unfinished projects Other visible maintenance concerns This does not mean every scratch, weed or worn carpet automatically causes a specific dollar adjustment. It means the property’s condition can be documented in a more structured way. 9. The Appraisal Starts at the Curb Do not spend all of the seller’s time and money staging the kitchen while ignoring the exterior of the property. The appraiser evaluates the whole property. That may include: Front-yard condition Backyard condition Fencing Exterior maintenance Debris Outbuildings Site characteristics A few weeds do not automatically reduce an appraisal. But significant exterior deferred maintenance or obvious property-condition issues do not disappear because they were left out of the MLS photographs. 10. Views and Site Influences Are Reported in Greater Detail Busy streets and views have always mattered when buyers and the market react to them. UAD 3.6 gives appraisers more structured ways to describe those characteristics. Idaho examples might include: An Eagle home with a Boise Foothills view A Boise Bench home with a city or mountain view A Meridian property backing to a major arterial A property adjacent to commercial development Power-line influences Open-space influences Water or other significant views A view may also be described more specifically based on characteristics such as whether it is full, partial or seasonal. The important distinction is that these concepts are not suddenly becoming relevant because of UAD 3.6. The reporting is becoming more detailed and structured. Video 2: Before the Appraiser Arrives - 10 Things Idaho Listing Agents Should Do Once Realtors understand what UAD 3.6 changes, the next question is practical: What should a listing agent actually do before the appraiser arrives? <br /> UAD 3.6 Pre-Appraisal Checklist for Listing Agents Audit the MLS information. Verify property characteristics rather than automatically copying the prior listing. Walk the entire property. Look beyond the rooms used for marketing photographs. Make relevant areas accessible. Bedrooms, bathrooms, garages, basement areas and applicable outbuildings should be accessible when required for the appraisal assignment. Understand the basement. Know what is above grade, below grade and potentially nonstandard finished area. Verify Vehicle Storage. Measure unusually small garages or unusual configurations when appropriate. Identify ADUs, additions and converted spaces. Do not market something into becoming something it is not. Create a dated improvement list. Tell the appraiser what was actually done and when. Know the roof age. UAD 3.6 contains a specific data element for estimated roof age. Find the solar documentation. Owned, financed, leased and power-purchase-agreement systems can have different underwriting and appraisal implications. Provide a concise factual property package. Give the appraiser accurate information without attempting to direct the appraiser’s independent opinion of value. What Should Be in a Listing Agent’s Appraiser Package? I recommend keeping it short and factual. Dated improvement list Roof replacement year, if known Major system replacement dates, if known Permits or final approvals when relevant and available ADU information Addition or converted-area information Solar ownership or financing documentation HOA information when relevant Unusual garage or vehicle-storage dimensions Unique property information that may not be obvious during the inspection The objective is not to tell the appraiser: "We need this property to appraise for $650,000." The objective is: "Here are accurate facts about this property that may be useful during your analysis." What About ADUs, Additions and Converted Garages? UAD 3.6 provides more structured reporting for accessory dwelling units and converted areas. A second kitchen does not automatically create an ADU. An ADU generally needs to provide independent facilities for: Living Sleeping Cooking Bathroom use Examples that may require additional analysis include: Basement apartments Detached casitas Converted garages Apartments over shops Detached finished structures Unpermitted additions An addition lacking a required permit is not automatically assigned zero value simply because a permit cannot be produced. Under current Fannie Mae UAD 3.6 policy, when an appraiser identifies an addition that lacks a required permit, the appraiser addresses the quality and appearance of the work and any impact it may have on market value. UAD 3.6 for Idaho Buyer’s Agents UAD 3.6 is not just a listing-agent issue. Buyer’s agents should understand how the new appraisal may interact with the property and the purchase contract before the buyer becomes deeply committed to the transaction. Video 3: 10 Things Buyer’s Agents Need to Know About the New Conventional Appraisal <br /> 10 Appraisal Issues Buyer’s Agents Should Watch 1. MLS Square Footage May Not Equal Appraisal Finished Area If your buyer is paying a premium because a listing advertises 3,500 square feet, understand what that 3,500 square feet includes. Some of it may be: Finished above-grade area Finished below-grade area Nonstandard finished area Detached finished area Those are not necessarily reported the same way in the appraisal. 2. The Appraiser Receives the Sales Contract The appraiser receives the applicable ratified sales contract and addenda. Transaction information may include: Seller-paid closing costs Interest-rate buydowns Credits Below-market financing Certain HOA payments Other transaction incentives Applicable personal property Buyer’s agents should write the transaction terms clearly and accurately. 3. Seller Concessions Are Not Automatically Adjusted Dollar-for-Dollar This is one of the most important misconceptions for Realtors to understand. A $15,000 seller concession does NOT automatically mean a $15,000 reduction in appraised value. The appraiser analyzes the market’s reaction to the concession. A dollar-for-dollar adjustment may be appropriate when supported by market evidence. It should not simply be a mechanical deduction because a concession exists. 4. Look Beyond the Pretty Kitchen The same lesson applies to buyers. A remodeled kitchen may be beautiful while the rest of the property tells a different condition story. Look at: Bedroom flooring Secondary bathrooms Roof condition HVAC age Exterior condition Deferred maintenance 5. Property Condition Can Affect Financing - Not Just Value Some property-condition issues can become more than negotiation problems. Under Fannie Mae’s condition framework, a C5 property can contain significant wear or deferred maintenance while remaining functional. A C6 property involves severe deficiencies affecting soundness or structural integrity. A property rated C6 is not eligible for delivery to Fannie Mae until the required repairs are completed and the property reaches at least C5 condition. That means sometimes the biggest appraisal problem is not: "Did the value come in?" It is: "Can the property qualify for the financing in its current condition?" 6. Functional Utility Still Matters UAD 3.6 does not create a universal minimum garage size, but functional utility continues to matter. Other examples might include: Having to walk through one bedroom to enter another bedroom Very unusual floor plans Converted garages Vehicle-storage areas that function differently than marketed Unusual additions The question is ultimately how typical buyers in that market react to the feature. 7. A Second Kitchen Does Not Automatically Mean ADU Buyer’s agents should investigate an advertised "ADU" before allowing the buyer to pay a premium based on that description. A second kitchen by itself does not automatically create an accessory dwelling unit. If the property contains a basement suite, detached casita, apartment above a shop or converted garage, it may be a good idea to discuss the property with the lender before writing the offer. 8. Pay Attention to the Site, Not Just the House A beautiful house may still have significant external influences. Examples include: Busy arterial streets Commercial development Power lines Industrial influences Views Open space Water If your buyer notices the traffic noise in the backyard, the market may notice it too. 9. Get Solar Documentation Early Not all solar systems are treated the same. A system may be: Owned outright Separately financed Leased Subject to a power-purchase agreement, or PPA Under Fannie Mae policy, solar panels leased from or owned by a third party under certain power-purchase arrangements are treated as personal property and are not included in the appraised value of the real estate. Do not wait until the week of closing to discover how the solar system is owned. 10. If the Appraisal Is Wrong, Use Facts - Not Frustration If an appraisal contains a legitimate factual problem, Fannie Mae requires lenders to maintain a borrower-initiated Reconsideration of Value, or ROV, process. A useful ROV identifies things such as: A factual error Unsupported information An omitted property characteristic Relevant market data More appropriate comparable sales Fannie Mae’s current borrower-initiated ROV requirements allow additional data or comparable properties, generally not to exceed five comparable properties. An ROV is not simply: "We don’t like the value." It needs to explain what is inaccurate, unsupported or incomplete. For more information, visit our Idaho Appraisal Reconsideration of Value Guide. What’s Actually New Under UAD 3.6 - and What Isn’t? This is an important distinction because there is already a lot of confusion about the new appraisal. These Concepts Are Not Necessarily New ANSI measurement standards Ceiling-height requirements Below-grade reporting Deferred maintenance Busy streets affecting marketability Views affecting market reaction Functional utility Seller concessions Appraisers reviewing sales contracts What UAD 3.6 Changes The significant change is the amount, structure, consistency and specificity of the data being collected and reported. Instead of much of the property story being buried in broad descriptions or free-form comments, UAD 3.6 gives appraisers more defined places to report the property’s individual characteristics. That is why I keep coming back to this point: The house itself is going to tell a much more detailed story than the MLS remarks. What Should Idaho Realtors Do Right Now? Listing agents should begin incorporating UAD 3.6 preparation into their listing process. Buyer’s agents should start identifying appraisal and financing questions earlier - ideally before the offer is written. If a property has an unusual feature such as: A low-ceiling basement An unusual garage A converted garage An ADU A detached living area Significant deferred maintenance Solar panels A major seller concession An unusual site influence talking to the lender early can prevent a lot of headaches later. Frequently Asked Questions About UAD 3.6 When does UAD 3.6 become mandatory? Fannie Mae and Freddie Mac require UAD 3.6 for all new appraisal reports initially submitted to UCDP on or after November 2, 2026. Why are some lenders talking about September 1? September 1 is not the nationwide Fannie Mae or Freddie Mac mandate. Some lenders are encouraging an earlier transition so appraisals already moving through the pipeline can be completed and submitted before the November 2 deadline. Is the old 1004 appraisal going away? The GSE forms redesign replaces the legacy collection of appraisal forms with the new dynamic Uniform Residential Appraisal Report structure used with UAD 3.6. Does every bedroom receive its own Q1-Q6 quality rating? No. Realtors should not describe UAD 3.6 as assigning every bedroom its own Q1-Q6 rating. The formal Condition and Quality ratings remain broader ratings, while UAD 3.6 adds more detailed component-level information involving kitchens, bathrooms, flooring and other property characteristics. Does an egress window make a basement above-grade finished area? No. Egress requirements and appraisal measurement requirements address different issues. A level that is partially below grade is generally reported as below-grade area under the applicable appraisal measurement requirements. Does space with a ceiling below 7 feet have zero value? No. Certain finished areas that do not meet the applicable standard measurement requirements can be reported separately as nonstandard finished area. The appraiser can still analyze whether that space has contributory market value. Is there a new minimum garage size under UAD 3.6? We have not identified a new universal Fannie Mae or Freddie Mac minimum garage width or depth created by UAD 3.6. Functional utility and the market’s reaction to the vehicle-storage configuration can still matter. Does a $15,000 seller concession automatically reduce the appraisal by $15,000? No. The appraiser analyzes the market’s reaction to sales and financing concessions. A dollar-for-dollar adjustment is appropriate only when supported by the market evidence. Does a second kitchen automatically make a property an ADU? No. An ADU generally needs independent living, sleeping, cooking and bathroom facilities and must meet applicable appraisal and underwriting requirements. Are leased solar panels included in appraised value? Solar panels leased from or owned by certain third parties under a power-purchase agreement are treated as personal property under Fannie Mae policy and are not included in the appraised value of the real estate. What is the best thing a listing agent can give an appraiser? A short factual property-information package containing accurate improvement dates, roof age when known, permits when relevant, ADU or converted-area information, solar information and other unusual property characteristics can be useful. The goal should be to provide facts, not influence the appraiser’s independent value conclusion. What should I do if the appraisal contains a legitimate error? Contact the lender and discuss whether a formal Reconsideration of Value is appropriate. A strong ROV identifies specific factual errors, unsupported analysis or relevant additional market data rather than simply disagreeing with the value. Official UAD 3.6 Sources and Further Reading I strongly encourage Realtors who want to go deeper to review the official Fannie Mae and Freddie Mac guidance rather than relying only on social media summaries. Fannie Mae - Uniform Appraisal Dataset 3.6 Resources Freddie Mac - Uniform Appraisal Dataset 3.6 Resources Freddie Mac - UAD 3.6 and Forms Redesign FAQ Fannie Mae - UAD 3.6 Transition Timeline and FAQs Fannie Mae - UAD 3.6 URAR Job Aids, Photo Requirements and ANSI Guidance More Appraisal and Realtor Education Appraisal Reconsideration of Value - Idaho Guide Mortgage and Continuing Education Resources for Idaho Realtors Idaho Mortgage Resources - 1st Choice Mortgage Final Takeaway for Idaho Realtors UAD 3.6 is going to be a significant shift for the conventional mortgage and appraisal industry. It is not something Realtors need to panic about. It is something we need to prepare for. Listing agents can help by providing accurate property information and identifying property-condition issues before appraisal day. Buyer’s agents can help by identifying unusual property and contract issues before the buyer is deeply committed to the transaction. And when an unusual appraisal situation arises, talking to the lender early is usually better than trying to solve the problem after the appraisal is complete. If you are an Idaho Realtor and you have a question involving a basement, ADU, garage, solar agreement, seller concession, condition issue or unusual property, give 1st Choice Mortgage a call before you list the property or write the offer. We are always happy to help. About the Author Gerald Robinson, CRMS, NMLS #4475, is President and CEO of 1st Choice Mortgage Company, LLC, Company NMLS #380736. 1st Choice Mortgage is a licensed Idaho mortgage broker that has served the Treasure Valley and communities across Idaho and Oregon since 1992. Gerald has worked in residential mortgage lending since 2002 - more than two decades - and has helped guide thousands of Idaho home loans to the closing table. He specializes in VA, FHA, conventional, USDA and Idaho Housing financing. Gerald is also an Idaho Real Estate Commission (IREC) certified continuing-education instructor. He teaches approved CE classes for Idaho real estate professionals, including a course on VA financing, and regularly provides mortgage, appraisal and loan-program education to agents throughout the state. Learn more on our Idaho Realtor continuing education page. 1st Choice Mortgage Company, LLC Company NMLS #380736 3023 E Copper Point Dr., Suite 101 Meridian, ID 83642 (208) 375-5626 Licensed in Idaho and Oregon 1st Choice Mortgage Company, LLC is an Equal Housing Opportunity Lender. 1st Choice Mortgage Company, LLC is not affiliated with Fannie Mae, Freddie Mac, FHA, HUD or the Department of Veterans Affairs. Mortgage and appraisal guidelines are subject to change. Always verify current requirements for the specific loan, lender and property involved.
