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National curriculum lesson 67 · Valuation

Sales Comparison Approach

The sales comparison approach estimates value by comparing the subject with recently sold, competitive properties and adjusting comparable sale prices for material differences. Adjust the comparable, not the subject: add when the comparable is inferior and subtract when it is superior. Reconcile the adjusted indications by reliability rather than blindly averaging them.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

The sales comparison approach estimates value by comparing the subject with recently sold, competitive properties and adjusting comparable sale prices for material differences. Adjust the comparable, not the subject: add when the comparable is inferior and subtract when it is superior. Reconcile the adjusted indications by reliability rather than blindly averaging them.
Official syllabus mapping for Sales Comparison Approach
Roadmap lesson67 of 500
Official syllabus topicSales Comparison Approach
Official PSI areaValuation and Market Analysis
Published area weight8% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 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.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

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

Give the most weight to sales requiring fewer and better-supported adjustments. The adjusted range communicates evidence quality.

Decision rule

Make the comparable look like the subject, using add for comparable inferiority and subtract for comparable superiority.

Georgia-specific distinction

The method is national, while comparable evidence must come from the subject's relevant Georgia market. A licensee's comparative market analysis supports brokerage advice but is not automatically an appraisal.

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 1

A comparable has a pool worth $20,000, but the subject does not. What adjustment is made?

  1. A. Add $20,000 to the comparable
  2. B. Subtract $20,000 from the comparable
  3. C. Add $20,000 to the subject
  4. D. No adjustment
Show answer and explanation →

Answer: B. Subtract $20,000 from the comparable

The comparable is superior, so subtract from its sale price.

Question 2

Which comparable generally deserves more weight?

  1. A. The oldest sale
  2. B. The one requiring the fewest supported adjustments
  3. C. The highest priced
  4. D. The one with the largest gross adjustment
Show answer and explanation →

Answer: B. The one requiring the fewest supported adjustments

Greater similarity and better-supported adjustments usually make the indication more reliable.

Question 3

What is being adjusted in sales comparison?

  1. A. Subject's unknown value
  2. B. Comparable sale prices
  3. C. Loan balance
  4. D. Tax rate
Show answer and explanation →

Answer: B. Comparable sale prices

Known comparable prices are adjusted to indicate the subject's value.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Cost Approach to Value. Continue to roadmap lesson 68 and build on this decision rule.

Return to the Valuation and Market Analysis hub to see every official branch and the complete lesson sequence for this content area.

Sales Comparison Approach questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Sales Comparison Approach on the Georgia real estate exam?

Yes. It belongs to PSI's Valuation and Market Analysis content area, which is 8% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Sales Comparison Approach?

Make the comparable look like the subject, using add for comparable inferiority and subtract for comparable superiority.

What Georgia-specific distinction should I remember?

The method is national, while comparable evidence must come from the subject's relevant Georgia market. A licensee's comparative market analysis supports brokerage advice but is not automatically an appraisal.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.