Starting November 2nd, Fannie Mae and Freddie Mac are requiring a new digital appraisal system. I sat in on a roundtable discussion about it last week with local appraisers and agents. Here's what's actually changing.
What's different:
Appraisers currently spend 10-15 minutes inside a home. Under the new system they'll need at least an hour. There are 100+ additional data fields they're now required to collect, things like ceiling height in every room, detailed condition ratings, and more granular property data.
What it means for your contract:
The practical advice coming out of that roundtable: order your appraisal immediately after inspection. Don't wait. Two to three days after inspection contingency is removed should be the target.
What it means for cost:
Appraisers set their own prices competitively, so nothing is official yet. But an inspection that now takes 4-6x longer is almost certainly going to cost more than the current ~$500 average.
One more thing:
About 30% of appraisers are expected to leave the business because of this transition. Fewer appraisers plus longer appointments means scheduling is going to get tighter. Another reason to order early.
If you're under contract or planning to be before the end of the year, talk to your lender now about timeline expectations.
Happy to answer questions below.