The Weighting Question

LinkedIn Post 05: The Weighting Question

You have two market comparables and one synthetic comparable in your analysis. How do you weight them?

Current professional standards don't specify. So valuers use discretion: some weight all three equally, some weight synthetics lower, some exclude them entirely.

Discretion in methodology is risky when standards are undefined. Inconsistent weighting across similar valuations looks like judgment is subjective rather than principled.

Safer approach: Establish a weighting hierarchy. Market comparables get higher weight. Synthetic comparables get lower weight. Document the rationale.

This creates consistency and defensibility. It also demonstrates that you recognize the methodological difference between market evidence and algorithm output.

#Valuation #Methodology #Governance #RealEstate #Standards