Some appraisers think that all they have to do is just to follow the FNM guidelines and it doesn’t matter if the report makes sense or not. The subject is a two-story home with 4 bedrooms, 3 baths, 1765 sqft located on a semi traffic street. There are plenty of comps in the neighborhood but they are from inside tract. We all know that in situation like this, the appraiser is supposed to select at least one comp from the same or similar street to show if there is any adverse traffic noise effect. The appraiser has picked up two model matches from inside tracts both of them sold $360,000. He also picked a sale from the same street that was sold $385,000 but it is smaller and has 2.5 baths. The adjusted value comes up at $355,000 for two model matches based on -$5000 for their locations and $395,000 for the one on the traffic street based on adjustment for .5 bath and smaller GLA. His concluding value is $355,000. Although the value is correct, but the report is misleading. Anyone who looks at that grid, would say the one on traffic street has smaller size and has less bath but has $40,000 more value than those two homes inside tracts that have larger size, more baths and obviously superior locations. The important thing that this appraiser failed to search is that the one on traffic street has an addition and upgraded condition that was described in MLS but was not in public records and the appraiser obviously didn’t bother to look at the MLS and was not puzzled that how an smaller home on a traffic street should sell higher than larger homes from inside tract.