Adjustments are a sticking point in many appraisal reviews. A big concern according to Bill King, director, Valuation Services at Veros Real Estate Solutions, is that many appraisers get stuck on the 10 percent line item adjustment. The rule is simply: Make the adjustment the amount it is supposed to be, King said. 

“Do the required paired sales analysis. If the sale is one of the most appropriate sales to estimate the market value for the subject and the line item adjustment is 25 percent, make the adjustment,” said Frank Danna, president and chief executive officer of Appraisal Logistics, Inc. “If you are reducing the amount of the adjustment to stay within a threshold, you are doing it wrong. The reconciled value will not be accurate.”