For which grid line items does Fannie Mae especially expect fact-based comments on the work and data sources behind the adjustments?
Correct Answer
C) The lines from Sales or Financing Concessions through Condition
The appraiser must give fact-based, objective comments on the work performed and data sources used for the adjustments, especially for the characteristics between the Sales or Financing Concessions and the Condition line items.
Why This Is the Correct Answer
Option C is correct because Fannie Mae requires fact-based and objective comments detailing the work performed and data sources used for market-supported adjustments. It states this applies especially to characteristics reported between the Sales or Financing Concessions and the Condition line items. These lines carry many of the key adjustments in the grid.
Why the Other Options Are Wrong
Option A: The lines from the subject’s address through the sale price
Option A is wrong because the lines from the subject's address through the sale price are identifying and transaction data, not the adjustment lines Fannie Mae singles out. The emphasis is on Sales or Financing Concessions through Condition.
Option B: The data source and verification source lines
Option B is wrong because the data source and verification source lines report where information came from, not the characteristics being adjusted. Fannie Mae highlights the lines from Sales or Financing Concessions through Condition.
Option D: The indicated value lines at the foot of the grid
Option D is wrong because the indicated value lines at the foot of the grid are results, not the adjusted characteristics that need supporting commentary. The special emphasis is on Sales or Financing Concessions through Condition.
Concessions to Condition
Both ends start with C: from Concessions down to Condition is the stretch that needs the strongest explanation.
How to use: Use the C-to-C stretch to recall which grid lines Fannie Mae especially wants explained.
Exam Tip
When asked which grid lines need special explanation, look for the range that begins at sales or financing concessions and ends at condition.
Common Mistakes to Avoid
- -Focusing comments on address and sale price lines
- -Thinking listing data and verification sources are the main focus
- -Writing generic comments without describing the work and data used
Concept Deep Dive
Analysis
This question tests where Fannie Mae focuses its demand for adjustment commentary. The appraiser must give fact-based, objective comments on the work and data sources behind market-supported adjustments. The emphasis is on the characteristics reported from the Sales or Financing Concessions line through the Condition line.
Background Knowledge
Fannie Mae expects adjustments to be market-based and explained so a reader can understand their support. The grid lines from concessions through condition cover major items such as date of sale, location, site, view, design and quality. Comments should describe the method and data, not just restate the adjustment amounts.
Real-World Application
An appraiser adjusts comparables for location, view and quality. In her comments she explains the paired sales and market data she used for each, rather than simply stating that adjustments were market derived.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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