Starting in November 2026, the standard residential appraisal report will be replaced by a completely redesigned format, one of the biggest changes to residential appraisals in decades. This form will be mandatory for all conventional loans and accepted for FHA loans, while VA remains unchanged for now.
The new appraisal form is meant to provide greater detail compared to the previous format, with additional data points to be included in the valuation summary. The concept of this is to create a more dynamic report by allowing appraisers to account for value in ways they previously could not. It also breaks down the condition of the property into both interior and exterior, along with more detail on every individual room in the home.
The main concern with the new appraisal format is that it will slow down the appraisal process due to both complexity and appraisers getting used to the new form. There could also be additional human errors made during the adjustment process, leading to more corrections or revisions needing to be made to appraisal reports.
This should be a positive change for buyers and sellers. Determining the value of a residential property is an incredibly complex process, and the updated form should produce more accurate results in the long run. It is worth noting that appraisals will look slightly different moving forward; however, the purpose behind them will remain largely the same.
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