Which practice helps ensure adjustments are credible and defensible?

• A. Keep adjustments private to avoid scrutiny.
• B. Document the rationale for each adjustment, including data sources and market factors.
• C. Apply the same adjustment to all properties.
• D. Use only demographic data for adjustments.

Answer: (B)

Documenting the rationale for each adjustment, including data sources and market factors, is essential for credibility and defensibility. When every adjustment is tied to specific evidence—such as comparable sales, location influences, property features, and current market trends—the reasoning behind the change is clear and checkable. This transparency lets a reviewer reproduce the analysis, assess the data used, and see how market dynamics justify the adjustment, which keeps the process objective rather than subjective. Without this documentation, adjustments can appear arbitrary and open to challenge. If adjustments are kept private, or if the same adjustment is applied to every property, or if only demographic data is used, the appraisal misses important nuances and introduces bias or errors. A well-documented, data-driven approach ensures adjustments reflect actual market behavior and are defendable under scrutiny.