A major change is coming to one of the most familiar parts of a real estate transaction – the appraisal.

The mortgage industry is transitioning to a redesigned Uniform Residential Appraisal Report and a new Uniform Appraisal Dataset. The changes are intended to modernize an appraisal reporting system that has relied on standardized forms for decades.

For most buyers and sellers, the change will happen behind the scenes. The purpose of the appraisal report isn’t changing. It will continue to provide the opinions and conclusions needed to evaluate the property for a mortgage finance transaction.

What will change is how the property is described and how that information is reported.

The new system provides for more detailed and standardized property information. That’s significant in a market like Northeast Tennessee, where homes don’t always fit neatly into a standard description.

The region has a diverse housing stock. New construction competes with homes that are 50, 75 or more than 100 years old. Finished basements, additions, acreage, outbuildings and renovations can make two homes with similar square footage very different properties.

More detailed and standardized reporting is intended to give lenders and other users of the appraisal a clearer picture of the property’s characteristics.

It also puts another spotlight on the importance of accurate property information.

REALTORS® routinely deal with square footage, improvements, property condition and other details when preparing a listing. Those details help buyers understand a property, but they can also provide useful information during the appraisal process.

The transition won’t happen overnight. Appraisers, lenders and other industry participants have already begun preparing for the new reporting requirements, with the mandatory transition scheduled for November 2, 2026.

There will be a learning curve—but that’s nothing new in real estate.

Contracts change. Lending standards change. Technology changes. And the way properties are bought, sold, and evaluated continues to evolve. That’s nothing new for real estate. It has always been an industry that requires professionals to adapt, learn, and keep up with change.

For consumers, the takeaway is simple. The appraisal isn’t going away, but the way the industry reports the information behind it is getting a major update.

For REALTORS®, it’s another change worth understanding so we’re prepared when our clients have questions.