What is the maximum gross adjustment to any one comparable sale according to Fannie Mae and Freddie Mac guidelines?

The maximum gross adjustment to any one comparable sale according to Fannie Mae and Freddie Mac guidelines is 25%. This percentage is significant because it establishes a cap on how much the value of a comparable property can be adjusted, ensuring that appraisers maintain consistency and mitigate the risk of overestimating or underestimating property values.

By limiting the gross adjustments to 25%, Fannie Mae and Freddie Mac aim to promote more reliable and standardized evaluations in the appraisal process, which helps maintain the integrity and stability of the housing market. This guideline encourages appraisers to select truly comparable properties and to adhere to sound appraisal practices. In addition to ensuring accuracy, this standard also helps in maintaining borrower confidence and stability in loan underwriting processes.