Under Fannie Mae's Selling Guide, a comparable is 200 sq ft smaller than the subject and receives a $15,000 GLA adjustment. Which grid comment meets the Guide's commentary requirement?
Correct Answer
B) Paired sales in the subdivision show about $75 per sq ft; 200 sq ft at $75 gives $15,000.
The Guide requires fact-based, objective comments that detail the work performed and the data sources behind market-supported adjustments, and says a statement merely recognizing that an adjustment was made is not acceptable. The paired-sales comment names the method, the data and the arithmetic (200 x $75 = $15,000). Simply restating the adjustment, citing a rule-of-thumb rate, or pointing to net and gross guidelines Fannie Mae does not have all fall short.
Why This Is the Correct Answer
Option B is correct because it details the work performed (paired sales), the data source (subdivision sales) and the arithmetic, 200 sq ft x $75 = $15,000. That is the fact-based, objective commentary the Guide requires for market-supported adjustments.
Why the Other Options Are Wrong
Option A: GLA adjusted $15,000 for the difference in size between the comparable and the subject.
Option A says GLA was adjusted $15,000 for the size difference. That only recognizes that an adjustment was made, which the Guide says is not acceptable, because it gives no method or data.
Option C: GLA adjusted using the rule-of-thumb rate the appraiser applies across most assignments.
Option C cites a rule-of-thumb rate the appraiser uses across assignments. The Guide expects market-based adjustments and gives an example of a rule-of-thumb rate being inappropriate when market analysis shows a different figure.
Option D: GLA adjustment kept within net and gross guidelines, so no further support is needed.
Option D says the adjustment stayed within net and gross guidelines. Fannie Mae has no specific net or gross limits, and staying within any limit does not show how the $15,000 was derived.
Method, data, math
A good adjustment comment states how the figure was found, from what data, and the arithmetic. Missing any one weakens it.
How to use: Use this to check whether an adjustment comment would satisfy a reviewer.
Exam Tip
Prefer the comment that names a market method and data source over one that restates the adjustment or cites a limit.
Common Mistakes to Avoid
- -Restating an adjustment without explaining its basis
- -Relying on a rule-of-thumb rate instead of market evidence
Concept Deep Dive
Analysis
This tests what Fannie Mae means by adequate adjustment commentary. The acceptable comment shows the method, the data source and how the dollar figure was reached, so a reviewer can follow it.
Background Knowledge
Adjustments in the sales comparison approach should be derived from market evidence such as paired sales, statistical analysis or other accepted methods. Reporting the method and data lets lenders and reviewers judge whether each adjustment, and the resulting reconciliation, is supported.
Real-World Application
A reviewer flags a report whose comments say only "adjusted for GLA." The appraiser adds that paired sales in the subdivision support a per-square-foot rate and shows the calculation for each comparable.
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