4 Real Estate Changes Homeowners Should Know About This Fall

There’s a lot happening in real estate right now, and not all of it has to do with home prices.

Mortgage rates have moved in the wrong direction again, but there are also several changes coming over the next few months that could affect homeowners, buyers and sellers — from new rules for accessory dwelling units in Maryland to a major overhaul of the appraisal process.

Here are four things worth having on your radar.

Maryland's ADU Rules Are Changing October 1

Accessory Dwelling Units, or ADUs, have become a bigger part of the housing conversation as homeowners look for ways to create additional living space, accommodate family members or potentially generate rental income.

Maryland passed legislation requiring local jurisdictions to allow ADUs on qualifying properties with single-family detached homes. By October 1, 2026, counties and municipalities must have local laws in place that comply with the state's requirements.

An ADU could be a separate structure or an addition to an existing home, and local jurisdictions may also allow units created within an existing house. Think converted space for an aging parent, an apartment for an adult child or a separate rental unit.

That doesn't mean every homeowner can automatically build whatever they want. Building codes, health and safety requirements, utilities and local regulations still matter. But for some Maryland homeowners, this could create opportunities that weren't available before.

A Major Appraisal Change Arrives November 2

The appraisal industry is also going through one of its biggest changes in years.

Beginning November 2, a redesigned appraisal system known as UAD 3.6 becomes mandatory for new appraisal reports submitted on loans sold to Fannie Mae or Freddie Mac.

Instead of relying on the familiar collection of standardized appraisal forms, the new system uses a more dynamic Uniform Residential Appraisal Report and captures significantly more property data.

For homeowners, the important takeaway is that appraisals are becoming more detailed. The new system includes expanded information about a property's characteristics and more specific reporting of interior and exterior condition.

That doesn't mean a renovated kitchen suddenly adds a certain dollar amount to your appraisal, or that every cosmetic improvement will increase your home's value. Appraisers still look at comparable sales, market conditions, location and many other factors.

But it does reinforce something we've told sellers for years: the condition of your property matters, and understanding where your home stands before putting it on the market is important.

Condo Associations Face New Requirements in January

If you own a condo, this is one to watch closely.

Beginning January 4, 2027, Fannie Mae and Freddie Mac are increasing the standard budgeted reserve contribution requirement for many condominium projects from 10% to 15%.

Why should an individual condo owner care about the finances of the association?

Because when a condo project doesn't meet Fannie Mae or Freddie Mac requirements, financing can become more complicated for potential buyers. And if fewer buyers are able to finance a purchase in a particular community, that can create challenges when owners eventually want to sell.

Condo owners — especially those considering selling in the next year or two — may want to pay attention to how their association is preparing for the new requirements.

Congress Is Considering a Big Capital Gains Change for Homeowners

This one hasn't happened yet, but it could be significant.

The More Homes on the Market Act has been introduced in Congress and would double the federal capital-gains exclusion available when qualifying homeowners sell their primary residence.

Currently, qualifying individuals can exclude up to $250,000 in gains, while married couples filing jointly can exclude up to $500,000. The proposed legislation would increase those amounts to $500,000 and $1 million, respectively, and provide for future inflation adjustments.

Those existing limits have been around since 1997. Home values, of course, have changed quite a bit since then.

For longtime homeowners who purchased decades ago and have accumulated substantial equity, capital gains can become part of the decision about whether it makes financial sense to sell. If this legislation eventually becomes law, it could remove some of that concern for certain homeowners.

For now, though, this is still proposed legislation, not a change homeowners can count on yet.

And Then There Are Mortgage Rates

All of these changes are happening against a housing market that is still dealing with higher borrowing costs.

The average 30-year mortgage rate reached 6.87% at the end of August, and rates have continued to move higher in September. Inflation concerns, rising bond yields and uncertainty surrounding energy prices and conflict in the Middle East have all contributed to the recent increase.

That's frustrating for buyers who were hoping rates would continue moving lower this year.

But it's also a good reminder that the housing market isn't driven by one number. Rates matter, but so do inventory, competition, home prices, your financial position and what's happening in your particular neighborhood.

There isn't one answer that works for every homeowner or every buyer.

With several significant changes arriving over the next few months, it's worth understanding how they apply to your specific situation. If you're wondering what your home is worth, considering selling, thinking about an ADU or just trying to figure out whether now is the right time to make a move, give us a call.

We're always happy to talk through the numbers and help you figure out what makes sense for you.