Valuation adjustments

A comparable sale price rarely answers a unit valuation question by itself. Valuation Adjustments connects a named unit to a named comparable, an adjustment reason, an amount and a reviewer. The team can read the comparable sale price and adjusted value on the same record. That makes the judgment inspectable: a later reader sees which sale was used and what changed for the unit under consideration.

The Valuation Coordinator prepares the link between unit and comparable and writes the reason in terms another reviewer can understand. The Valuation Reviewer examines the sale evidence, confirms that the selected unit is the intended subject and records the reviewer connection. The adjusted value is calculated from the source sale and entered adjustment. It does not replace the judgment about whether that adjustment is appropriate. Keep the raw sale figure, reason and amount available when reading the result.

• Link. Select the unit and comparable whose sale evidence supports the case.
• Explain. Record the adjustment reason and amount rather than changing the original sale price.
• Review. Identify the reviewer and read the adjusted value beside the comparable source.

Agree a convention for positive and negative adjustment amounts. Teams should be able to tell whether an amount raises or lowers the comparable’s relevance to the subject unit. Decide how detailed the reason must be and which reviewer can accept a change to it. Confirm that unit area and sale area are recorded in compatible units before the reviewer interprets price per square foot. A property with several candidate sales may have several adjustments; name each adjustment so the discussion can refer to the right one.

Use a unit with a lease and a comparable with a source reference. Prepare an adjustment against that exact pair, enter a clear reason and amount, then have the reviewer trace the value back to the sale price. Compare the adjusted value with the entered amount. Test a different unit with the same sale and confirm the reviewer can distinguish the cases. Try a missing reviewer, reason or comparable link during the review rehearsal. Resolve the record before treating its adjusted value as reviewed evidence.

• Adjustments by Unit — Read the comparable, reason, amount, reviewer and adjusted value for a unit.
• My Reviewed Adjustments — Find adjustments connected to the reviewer.
• Comparable Sale Register — Return to the raw sale evidence behind a result.

Use adjustment review to rehearse the decision. Comparable evidence explains the source facts that precede it.