Consistency Matters

LinkedIn Post 12: Consistency Matters

Your firm uses synthetic comparables in some valuations but not others. What's your criteria for when they're appropriate?

"Professional judgment" is an answer, but it's not a defense. If you use synthetic comparables inconsistently—employing them in Property A but excluding them from Property B despite similar circumstances—you signal that judgment is subjective rather than principled.

Better approach: Develop consistent criteria. Use synthetic comparables when market comparables are genuinely scarce AND validation passes AND weighting reflects synthetic nature. Apply the same criteria across similar valuations.

Consistency demonstrates that governance is methodological, not arbitrary. It's professionally defensible.

#Valuation #Methodology #Consistency #Governance #RealEstate