Where this fits on the exam
| Official syllabus topic | Sales Comparison Approach |
|---|---|
| Official PSI area | Valuation and Market Analysis |
| Published area weight | 8% of the national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
The lesson
Comparable selection
Good comparables compete for the same buyers and are sufficiently similar in location, use, date, physical features, and transaction conditions.
Elements of comparison
Common adjustments address property rights, financing, conditions of sale, market conditions, location, physical characteristics, and economic characteristics.
Adjustment direction
If the comparable lacks a feature the subject has, add to the comparable's price. If the comparable has a superior feature, subtract.
Reconciliation
Weigh the relevance and reliability of each sale and its market-supported adjustments. A smaller adjustment count alone does not prove that a sale is better. Explain which evidence deserves the most weight.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A comparable sold for $310,000 and lacks a garage that contributes $18,000 to the subject's market.
Reason it through. The comparable is inferior because it lacks the feature, so its sale price is adjusted upward.
Answer. The adjusted indication is $328,000.
Common exam traps
- Adjusting the subject
- Adding for a superior comparable
- Using listing prices as closed sales without distinction
- Averaging unreliable indications
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1A comparable sold for $300,000. It has a pool worth $20,000 that the subject lacks, and it lacks a garage worth $12,000 that the subject has. What is the comparable's adjusted price?
- A. $268,000
- B. $292,000
- C. $308,000
- D. $332,000
Show answer and explanation →
Answer: B. $292,000
Adjust the comparable to look like the subject: subtract $20,000 for the pool the subject lacks and add $12,000 for the garage the comparable lacks, giving $292,000. The $308,000 answer reverses both directions, so it moves the comparable away from the subject instead of making it comparable.
- A. Incorrect. $268,000 subtracts both features, although the comparable needs a positive garage adjustment.
- B. Correct. Subtract $20,000 for the comparable's pool, then add $12,000 for its missing garage: $292,000.
- C. Incorrect. $308,000 reverses both directions by adding for the superior pool and subtracting for the missing garage.
- D. Incorrect. $332,000 adds both features, although the comparable's pool requires a subtraction.
Question 2Three sales have similarly relevant locations and dates, equally reliable data, and market-supported adjustments. Comp A indicates $305,000 after two small adjustments; B needs five large adjustments and C needs four. Which indication has the strongest stated basis for greater weight?
- A. Comp B, because it is the highest
- B. The simple average of all three comparables
- C. Comp C, because it is the most conservative
- D. Comp A, because it needed the fewest adjustments
Show answer and explanation →
Answer: D. Comp A, because it needed the fewest adjustments
With location, date, data quality, and adjustment support held comparable, A needs the least adjustment to resemble the subject. That supports greater weight here. In another case, better market evidence can outweigh a smaller adjustment count; reconciliation is not a counting rule.
- A. Incorrect. The highest indication does not make a sale the most reliable; Comp B required extensive adjustment.
- B. Incorrect. An equal average ignores differences in similarity and reliability among the three sales.
- C. Incorrect. A conservative result is not a substitute for judging the quality of each comparable.
- D. Correct. Assuming similarly reliable sale data, Comp A's two small adjustments suggest the closest match.
Question 3A licensee preparing a CMA finds a nearly identical house in the same subdivision listed at $340,000 that has not sold. How should it be used?
- A. As evidence of competition, not as a closed sale
- B. As the best comparable, since it is most similar
- C. As a closed sale adjusted for the asking price
- D. As proof of the subject's market value
Show answer and explanation →
Answer: A. As evidence of competition, not as a closed sale
Sales comparison rests on closed sales, and an active listing shows what a seller is asking, not what a buyer paid. It can show the competition the subject faces, but treating an asking price as a sale price overstates the evidence.
- A. Correct. An active listing shows an alternative facing buyers, but its asking price is not a completed-sale price.
- B. Incorrect. Similarity helps, but an unsold asking price supplies weaker sale evidence than an actual closing.
- C. Incorrect. The home has not sold, so its asking price cannot be treated as a closed transaction.
- D. Incorrect. An untested asking price cannot prove what the subject would sell for.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Sales Comparison Approach in one clear answer without notes.
- Separate Comparable selection from Elements of comparison using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Cost Approach to Value. Next, the cost approach covers the method appraisers use when good comparable sales are scarce, as with new or special-purpose buildings: land value plus cost new minus accrued depreciation.
Return to the Valuation and Market Analysis hub to see every official branch and the complete lesson sequence for this content area.