Line item adjustments in a grid should be:
Correct Answer
A) Applied consistently across all comparables
Why this is correct: Adjustments must be applied consistently across comparables to demonstrate they are derived from market evidence and not manipulated to achieve a predetermined value. Why the other choices are wrong: Varying adjustments to bring indications closer together is reverse engineering, not market analysis. There is no rule that adjustments should be applied only when they exceed 5% of price. Combining adjustments into a single net figure per sale obscures the analysis and is not standard practice. Exam tip: Consistency in the grid shows the adjustments are market-derived, not value-driven.
Why This Is the Correct Answer
Why this is correct: Adjustments must be applied consistently across comparables to demonstrate they are derived from market evidence and not manipulated to achieve a predetermined value. Why the other choices are wrong: Varying adjustments to bring indications closer together is reverse engineering, not market analysis. There is no rule that adjustments should be applied only when they exceed 5% of price. Combining adjustments into a single net figure per sale obscures the analysis and is not standard practice. Exam tip: Consistency in the grid shows the adjustments are market-derived, not value-driven.
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