Major changes are coming to the residential appraisal process. While the industry is still preparing for the transition, we want Baird & Warner agents to have an early look at what’s ahead. Fannie Mae and Freddie Mac are modernizing how property information is collected and reported through a redesigned appraisal report with more standardized data requirements.

Here’s what agents should expect:

1. A more detailed property inspection

Appraisers will collect and document more information about a property’s condition, quality, features, and improvements. This may mean more time at the property and greater detail around renovations, updates, and unique features.

2. Greater consistency in property reporting

The fundamentals of determining value are not changing. What is changing is how property information is collected, described and reported, with clearer definitions and more structured requirements.

3. Preparation will matter

Listing agents should be prepared to provide clear information about property updates and improvements, including when work was completed and other relevant details that can help accurately document the home.

Appraisal modernization represents a significant change to residential appraisal reporting. Key Mortgage is preparing now and will continue sharing updates and practical guidance as the industry moves closer to implementation.