Residential appraisal form: How Form 1004 and UAD 3.6 shape your home’s value

A Uniform Residential Appraisal Form is a standardized document that provides a professional appraiser’s opinion of a residential property’s market value, based on property data, market conditions, and comparable sales. For mortgage transactions, the lender typically orders the home appraisal, a qualified appraiser completes the valuation, and the lender uses the appraisal report when evaluating the property as collateral. The appraiser inspects the subject property, selects comparable sales, and enters findings into a report such as Fannie Mae Form 1004 or Freddie Mac Form 70 — or, starting November 2, 2026, the new dynamic UAD 3.6 appraisal report. 

TL;DR

• A residential appraisal form records an appraiser’s supported opinion of a property’s market value for a specified date.
• Fannie Mae Form 1004/Freddie Mac Form 70 remains part of the legacy appraisal system in September 2026, but new UCDP submissions must use UAD 3.6 starting November 2, 2026.
• A lender generally orders a mortgage appraisal and selects the appraiser; the borrower should not choose the appraiser for a Fannie Mae appraisal.
• Appraisers determine market value mainly by comparing the subject property to recent comparable sales and adjusting for differences.
• If a home appraisal appears inaccurate or incomplete, borrowers can ask their lender about a reconsideration of value (ROV).

Introduction

A home’s sale price, tax assessment, online home valuation, and appraised value can all be different. A residential appraisal helps lenders and other parties understand what a residential property is likely to bring in an open, competitive market under defined conditions. For buyers and homeowners, understanding how that number is developed can make a purchase, refinance, or valuation dispute easier to navigate.

For many years, the best-known real estate appraisal form for a one-unit property has been the Uniform Residential Appraisal Report, also called Fannie Mae Form 1004 or Freddie Mac Form 70. It provides a standardized structure for reporting information about the subject property, neighborhood, site, improvements, comparable sales, and the appraiser’s final analysis.

However, residential appraisal reporting is undergoing a major change in 2026. This comprehensive guide explains what Form 1004 means today, how a property appraisal determines market value, how to review a home appraisal report, what related appraisal forms are used for, how pdfFiller can help with form preparation, and what buyers, sellers, lenders, and real estate professionals should expect next.

Is Form 1004 still the residential appraisal form in 2026?

Yes — for now. As of September 2026, the legacy Fannie Mae Form 1004 and Freddie Mac Form 70 are still in use as the transition to UAD 3.6 continues. During the broad production period, which extends until November 1, 2026, lenders can submit appraisal reports using either UAD 2.6 or UAD 3.6, as appropriate.

Starting November 2, 2026, UAD 3.6 will become mandatory for every new appraisal report submitted through the Uniform Collateral Data Portal (UCDP). While lenders may revise UAD 2.6 reports submitted prior to this date throughout the transition phase, no new UAD 2.6 filings will be accepted once the mandate is enforced.

Legacy Form 1004 / Freddie Mac Form 70

Form 1004, commonly known as the Uniform Residential Appraisal Report, is designed to evaluate a single-family residential property (or one with an accessory unit, including properties within a planned unit development). Lenders use this report to assess the subject property’s value when processing a mortgage financing transaction. 

Because Freddie Mac Form 70 is identical in layout and content to Legacy Form 1004, lenders simply choose the version corresponding to the applicable Government-Sponsored Enterprise (GSE) for the mortgage. Running roughly six pages, the standardized report covers the subject property, contract details, neighborhood trends, site characteristics, physical improvements, and a comparable sales analysis, and concludes with the appraiser’s reconciliation and opinion of value. To ensure that automated systems can verify data integrity before selling loans to Fannie Mae or Freddie Mac, each entry must strictly adhere to the Uniform Appraisal Dataset (UAD) standardization guidelines.

Screenshot: Page 1 of the Uniform Residential Appraisal Report displayed in pdfFiller, ready to fill out and edit online.

What information does Form 1004 / Form 70 contain?

A traditional appraisal using this standardized document can contain information about:

• the subject property and transaction;
• neighborhood and market characteristics;
• site and land information;
• improvements and physical characteristics;
• room count and gross living area;
• property condition and quality;
• comparable sales;
• sales comparison adjustments;
• cost or income analysis when relevant;
• the appraiser’s reconciliation and opinion of value;
• a street map, property sketch, or floor-plan-related dimensions, photographs, and other exhibits.

What changes with UAD 3.6?

UAD 3.6 replaces legacy forms with a dynamic report that adjusts based on property type and intended use. Voluntary submission opened January 26, 2026, and becomes mandatory November 2, 2026, for new GSE submissions. The updated format aligns measurements with ANSI Z765-2021, requires deeper narrative analysis, and integrates rent data directly into the report.

For homebuyers and homeowners, the core purpose remains familiar: the appraisal report communicates the appraiser’s analysis and supported opinion of market value. For real estate appraisers, lenders, and appraisal management workflows, however, UAD 3.6 changes how property data is collected, standardized, reported, and transmitted.

Who orders, completes, and receives a home appraisal?

A home appraisal involves several parties, each with a distinct role:

• The lender/client orders or arranges the appraisal, reviews the report, and uses it in the lending decision
• The appraiser researches the property and market, performs the required analysis, and develops the opinion of value
• The borrower provides access when appropriate, pays the appraisal fee in many mortgage transactions, and reviews the completed report
• Seller/homeowner may provide property access and factual information about improvements or features
• Real estate agent may provide relevant property or comparable sales information, but does not control the appraiser’s value conclusion
• The lender’s underwriter is a financial professional who reviews the completed report to confirm the loan amount is supported before funding.

Appraisal independence is crucial. Fannie Mae’s requirements prohibit interested parties from improperly influencing an appraiser’s result, and lenders generally may not rely on an appraisal ordered directly by a borrower, seller, or real estate agent for a Fannie Mae mortgage transaction.

How does a residential appraisal determine market value?

A residential appraisal does not simply calculate the property’s square footage and apply a fixed price per foot. The appraiser combines verified property information with current market evidence and professional analysis.

Fannie Mae defines market value, in part, as the most probable price a property should bring in a competitive, open market when the buyer and seller are properly informed, typically motivated, and not subject to undue pressure.

Property evaluation process

A typical valuation process includes the following steps:

1. Identify the subject property. The appraiser confirms the location, relevant property rights, property type, site, improvements, and other assignment information.
2. Research the local market. Market conditions, supply and demand, neighborhood characteristics, listings, and recent transactions may affect the analysis.
3. Analyze the property. Depending on the appraisal type, this may involve an interior and exterior inspection, an exterior inspection, a hybrid data collection process, or a desktop appraisal.
4. Select comparable sales. The appraiser identifies properties that are reasonably comparable to the subject property and analyzes significant differences.
5. Make market-supported adjustments. Differences in location, size, condition, quality, features, or other relevant characteristics may require adjustments when supported by market evidence.
6. Consider applicable valuation approaches. The sales comparison approach is central to many residential appraisals. The cost and income approaches may also be relevant depending on the property and intended use.
7. Reconcile the evidence. The appraiser weighs the available data and develops a final opinion of value.

Fannie Mae emphasizes that the sales comparison approach requires analysis of comparable closed sales, contract sales, listings, and relevant market differences rather than a mechanical comparison of numbers.

What is the difference between Form 1007 and Form 1025? 

Fannie Mae Form 1007 and Form 1025 serve different purposes. Form 1007 is the Single-Family Comparable Rent Schedule, while Form 1025 is the Small Residential Income Property Appraisal Report.

Form 1007 assists appraisers in calculating the market rent for a single-unit property by comparing it with similar rentals and applying necessary adjustments. It serves to document rental income for lenders when assessing eligible single-family investment properties.

Form 1025 (Freddie Mac Form 72) offers a comprehensive real estate appraisal format tailored for multi-family homes with two to four units. It outlines physical property attributes, unit metrics, market comps, rental income, and the appraiser’s overall valuation assessment.

In simple terms: 

• Form 1007 focuses on market rent for a single-family property; 
• Form 1025 is an appraisal report for a two- to four-unit residential income property.

How do you read a residential appraisal report?

A completed appraisal report follows a predictable structure, and knowing where to look saves time. Start with factual information before focusing on the final value. An appraisal conclusion depends on the accuracy of the data used to develop it, so errors in the description of the subject property can matter.

For a legacy home appraisal report, review these areas:

• Subject and contract: Confirm the address, transaction information, property rights, and relevant contract data.
• Neighborhood and site: Review location, land characteristics, zoning, utilities, and market conditions.
• Improvements: Check the property type, design, age, number of rooms, gross living area, condition, garage, accessory unit, and other physical characteristics.
• Comparable sales: Review the selected properties, their proximity, sale dates, prices, and adjustments.
• Reconciliation: Read how the appraiser weighed the available valuation evidence.
• Final opinion of value: Confirm the appraised value and effective date of the appraisal.
• Exhibits: Review photographs, the street map, property sketch, floor plan, or dimensions where provided, and supporting addenda.

While the final valuation in the reconciliation section carries the most weight for buyers, sellers, and lenders, the preceding sections detail the exact methodology used to arrive at that figure.

Do not focus only on whether the value is higher or lower than expected. Check whether the report accurately describes the property and whether the appraiser’s analysis explains important differences between the subject property and comparable sales.

Home appraisal vs. home valuation, CMA, assessment, and inspection

These terms are commonly confused, but they do not describe the same service.

Although home inspections and property appraisals are often confused, they serve distinct purposes; while an appraiser might note physical conditions affecting a home’s value, their report cannot replace a thorough inspection of structural and mechanical systems. Similarly, automated online valuations or comparative market analyses (CMAs) may offer general market insight, but they lack the professional rigor and validation required by lenders for formal real estate appraisals.

How much does a home appraisal cost, and how long is it valid?

There is no universal national home appraisal cost. Recent 2026 consumer estimates commonly place a standard single-family appraisal in roughly the $300–$600 range, although complex, large, rural, multifamily, or government-loan assignments may cost considerably more. Location, property complexity, appraisal type, travel, and local market conditions all affect the fee.

An appraisal also does not have one expiration period that applies to every lender and loan program. Under current Fannie Mae requirements, when an appraisal is obtained, the property generally must have been appraised within 12 months before the date of the note and mortgage. If the original appraisal is more than four months but less than 12 months old, an appraisal update is required.

Other lending programs can apply different rules. Borrowers should therefore ask their lender which appraisal-age requirements apply to their specific real estate transaction.

What happens if the appraisal is lower than the purchase price?

A low valuation directly affects your mortgage options, as lenders determine maximum loan amounts based on the appraised value rather than the contract price. When an appraisal falls short of the agreed purchase price, buyers generally have three paths forward: renegotiating the purchase price with the seller, bringing additional cash to closing to cover the shortfall, or walking away using rights specified in an appraisal or financing contingency.

To address a low appraisal effectively, take these steps:

1. Examine the appraisal report for inaccuracies. Carefully audit the property’s basic details—including square footage, room and bathroom counts, overall condition, recent renovations, property classification, and the selected comparable sales—to check for factual errors or omissions.
2. Initiate a Reconsideration of Value (ROV). If you identify material issues, contact your lender to request an ROV. Under federal interagency guidelines, financial institutions may request a valuation reassessment if the original report contains factual errors, omissions, or inappropriate valuation assumptions.
3. Submit clear, factual evidence. An ROV is designed to correct objective errors, not to pressure an appraiser into hitting a target valuation. Supply documented facts—such as uncredited home improvements or recent, relevant comparable sales that were omitted—so the lender and appraiser can evaluate the report through the proper review channels.

How can pdfFiller help with residential appraisal documents?

Residential real estate transactions involve much more paperwork than the appraisal report alone. Buyers, sellers, agents, property managers, investors, and lending teams may need to review, complete, annotate, organize, and share supporting PDFs throughout the process.

pdfFiller gives everyone in the transaction a single place to handle it online. Its fillable form library includes real estate appraisal form templates and lender disclosures that borrowers, agents, and lending professionals can complete directly in a browser, without printing or scanning.

With pdfFiller, you can upload PDFs from the Form library, your device, or cloud storage, fill out document fields, add comments and annotations, export documents, and securely share PDFs for review.

For sensitive real estate documentation, pdfFiller maintains security and compliance measures, including SOC 2 Type II certification and GDPR-related safeguards. Plus, it provides a legally binding electronic signature tool that complies with ESIGN and eIDAS standards, allowing you to easily sign appraisal acknowledgments or ROV cover letters.

Final thoughts

A residential appraisal form is more than a place to record a property value. A reliable appraisal explains how property characteristics, comparable sales, market conditions, and professional analysis support the final opinion of value.

The 2026 transition from legacy appraisal report forms to UAD 3.6 makes it especially important for borrowers and real estate professionals to understand which report they are receiving and how to review it.

If you’re managing appraisal disclosures, borrower acknowledgments, or any other paperwork tied to a home purchase or refinance, pdfFiller can simplify the process from start to finish. Start a free trial of pdfFiller today to fill, review, annotate, organize, and securely share appraisal-related and other property documents online.

Glossary

• Appraised value: The value conclusion developed by an appraiser for a specific property, effective date, and appraisal assignment. It may differ from the contract price, assessed value, or an automated home valuation.
• Comparable sale: A recently sold property used as market evidence because it is sufficiently comparable to the subject property. Appraisers analyze and, where appropriate, adjust for significant differences.
• Market value: The most probable price a property should bring under specified open-market conditions, assuming typically motivated and informed parties and no undue stimulus.
• Subject property: The specific home being appraised, as distinct from the comparable properties used to estimate its value.
• Desktop appraisal: An appraisal completed using public records, photos, and data instead of an in-person site visit.
• Uniform Residential Appraisal Report (URAR): A standardized appraisal report used to communicate residential property information and valuation analysis. The URAR is being redesigned as part of the UAD 3.6 transition.
• Reconsideration of value (ROV): A process through which a financial institution may ask an appraiser or valuation preparer to reassess a valuation when credible deficiencies or additional relevant information are identified.

Trusted sources

• Fannie Mae — Uniform Appraisal Dataset (UAD) 
• Fannie Mae — Uniform Appraisal Dataset (UAD) and 2026 transition resources
• Fannie Mae — Selling & Servicing Guide Forms, including Forms 1004, 1007, and 1025
• Fannie Mae Selling Guide — Appraisal Age and Use Requirements
• Consumer Financial Protection Bureau — Regulation B §1002.14, Rules on providing appraisals and other valuations
• Office of the Comptroller of the Currency — Final Interagency Guidance on Reconsiderations of Value
• Fannie Mae — Appraiser Independence Requirements