For buyers — due diligence

The Appraisal Report Changes November 2, 2026: What Buyers of a Downtown Condo Should Know

Starting November 2, 2026, appraisals for loans delivered to Fannie Mae or Freddie Mac must use the redesigned Uniform Residential Appraisal Report (UAD 3.6), a single report that replaces the separate appraisal forms, including the condo unit form. For a downtown condo buyer, the new report spells out more: the condition of each kitchen and bathroom, each defect with a recommended action and photos, and known legal actions involving the building.

Your Appraisal Will Look Different

The redesigned report replaces the separate forms appraisers have used, including the condo unit form (1073/465), with a single dynamic report. Fannie Mae and Freddie Mac confirmed on September 30, 2026 that the November 2 date is not changing.

These rules apply to conventional loans sold to Fannie Mae or Freddie Mac. FHA, VA and portfolio loans follow their own rules. If you're not sure which kind of loan you're getting, your lender can tell you, and it's worth knowing before you're under contract.

The appraisal is the unit side of a conventional condo loan; the building side, and why it differs for older buildings, is covered in Why Financing an Older Downtown Condo Isn't the Same Process as Financing a New One.

More Detail Means More to Read

Under UAD 3.6, the appraiser reports these items individually:

• For each kitchen and bathroom: its update status, the time frame of any update, and its condition.
• Each physical defect as its own entry, with its location, a description, whether it affects soundness or structural integrity, and a recommended action, with photos.
• Whether broadband internet is available.
• For a unit in a condo project, any known legal actions.

Much of this is useful beyond the loan. A defect entry with a location, a photo and a recommended action is a specific item you can raise with the seller, compare with your inspection, or plan to address after closing.

Why the Square Footage May Not Match the Listing

For appraisals on loans sold to Fannie Mae, the ANSI square-footage standard is not used for condos in apartment-style or multifamily buildings; the appraiser uses interior perimeter measurements instead. ANSI must be followed for house-style designs such as townhouses and rowhouses, regardless of ownership type.

Listing square footage can come from a developer's floor plan, an earlier listing or an owner's estimate, so the appraisal's figure for a high-rise condo may differ from it. The appraisal's figure is the one your lender uses. If it's noticeably smaller than the listing's, ask your agent how the listing figure was derived and whether it changes how you see the price.

When the Report Flags Something

A reported defect, or a known legal action involving the building, can lead your lender to ask questions or set conditions on the loan. That doesn't by itself mean the loan fails; it means there's something to resolve.

Talk to your lender and your agent as soon as the appraisal comes back, and before your contingency deadlines. Your lender can tell you what it needs. Your agent can help you decide whether to ask the seller for a repair, a credit or more information. Waiting until a deadline is close leaves fewer options.

None of this is legal or lending advice; what a specific item in the report means for your loan is your lender's call.

Timing Your Rate Lock and Closing Around the Change

If your appraisal will happen near November 2, ask your lender which format it will use and how long appraisals are currently taking. Lenders and appraisers are adjusting to a new report, so allow extra time in your closing date and ask whether your rate lock covers it.

The appraisal is one of several things that can move a closing date; What Actually Delays a Downtown Condo Closing covers the others.

Ask for Your Copy and Read It

Ask your lender for a copy of the appraisal and read all of it, not just the value. The condition and defect sections are where the new report adds the most, and they're specific to the condo you're buying.

Look at the update status and condition of each kitchen and bathroom, each defect with its location and recommended action, and, for a condo, any known legal actions. You can also confirm the appraiser's license on the Illinois Department of Financial and Professional Regulation (IDFPR) license lookup.

The rules here are stated as of October 2026; your lender applies whatever is in effect when your appraisal is ordered.

Roz Dupiton is a top real estate advisor and downtown Chicago condo specialist.