The Basics: What’s Happening?
Mortgage leaders Fannie Mae and Freddie Mac overhauled the home appraisal process. Old paper-style forms were phased out for digital, customizable reports. Instead of grading your entire home with a single overall rating, appraisers now rate parts of the home separately.

The Big Win for Upgrades: If your kitchen and bathrooms are fully remodeled, you get credit for those improvements even if the roof or siding is showing some age.

Specialized Features: Modern home additions—like backyard ADUs (in-law suites), solar panels, and high-speed internet availability—now have their own dedicated sections instead of being buried in general notes.

What Sellers Need to Know
Basements Don't Count in Primary Square Footage: Strict measuring rules (ANSI standards) mean finished basements, split-level lower floors, or daylight walkouts cannot be combined into the main living space square footage. They are measured and valued in a separate category, so price your home based on above-ground space.

Gather Your Proof: Create a folder for the appraiser containing building permits, receipts and dates for recent renovations, and paperwork showing whether your solar panels are owned outright or leased.

What Buyers Need to Know
Fewer Full Appraisals: On low-risk loans (often when putting down a higher down payment), lenders often use Appraisal Waivers or Hybrid Appraisals. This speeds up the timeline significantly.

Cost & Contingencies: A standard home appraisal usually costs between $350 and $600. Your contract's appraisal contingency protects your earnest money deposit if the home evaluates for less than your offer price.

Appealing a Low Valuation: If the valuation comes in below your purchase price, you have a formal process (Reconsideration of Value) to appeal. You and your real estate agent can submit recent neighborhood sales or point out overlooked upgrades to ask for a review.