I thought I would post a questions for FRIENDLY debate and discussion... Are the FNMA guidelines for one line, net and gross adjustments out of date or a hindrance? Should they be expanded or removed all together? With the declining values within the marketing areas and with the limited number of sales in some cases, the appraiser has no choice but to exceed these guidelines to produce a credible report. Example, you have a home on a small lake... Your comparables have sold for $119K (on lake), $100K (not on lake), $115K (on the lake) and $105K (not on the lake). You derive that, all things else being equal, the influence of the lake adds $10K-$20K to the value of the home. Well if you use $15K lake adjustment, you exceed the one line adjustment in one swoop. If you use $20K adjustment, you exceed the net adjustment in one swoop. If you add any adjustment to the adjustments you might have already made to GLA or condition, you exceed the gross. All of which are valid adjustments and derived from the marketing area, but FNMA (and AMC/Green UWs) state that you are in the wrong. So they harass the appraiser and question the report. Now, I have had appraisers suggest to me, "you should tweak your adjustments so they are under the one line, net and gross. You will not have the problem that way!" Tweak an adjustment?!? Are you kidding me. When I make a lake adjustment, I look at properties not on the lake vs properties on the lake and, even if the houses are not comparable to mine, I figure out the % of contribution of that lake influence to the value of the property. Then I look at historical data and see if that % has changed or remained the same. Then I look at active/pendings to see if I can find the same correlation. Then I look at expireds to see if the same % may exist. Then I look at the sales prices of homes where the % was derived from and see if there is a variance in the % contributed. Then I take all that data and gather the median and average % contribution to the property. THAT is the adjustment that is utilized within the report. I do not give a crap if it exceeds the one line, net or gross %. That is what the marketing area is telling me that adjustment should be, so that is what I am going to use. There is no "tweaking" that number to fit MY goals of not getting a condition... it is what it is!!! So the question remains, does the one line, net and gross guideline need to be revised for current time. Are properties that exceed these guidelines STILL comparable?!? Do the net and gross restrictions serve any purpose?!? Do you honestly tweak your adjustments to avoid a condition?