Best for: houses & land; required inputs: recent, nearby, arm's-length sales
Before you read
Test yourself first: 5 questions
Question 1 of 5
In the sales comparison approach, adjustments are made to:
Answer: A. You adjust the COMPS to make them resemble the subject: add value to an inferior comp, subtract from a superior one.
Question 2 of 5
In the sales-comparison approach, when a comparable property is SUPERIOR to the subject in some feature, the appraiser adjusts the comparable's sale price by:
Answer: B. Adjustments are always made to the comparable. If the comparable is superior, its price is reduced to estimate what it would have sold for if it were like the subject.
Question 3 of 5
An appraiser is selecting comparable sales for the sales-comparison approach. Which characteristic is MOST important when choosing comps?
Answer: B. Good comparables are recent, located near the subject, and similar in physical and locational characteristics, so adjustments are minimized.
Question 4 of 5
Adjustments in the sales-comparison approach are NEVER made to the:
Answer: C. The subject property is the unknown being valued; all adjustments are made to the comparables to make them equivalent to the subject.
Question 5 of 5
The principle that a buyer will pay no more than the cost of an equally desirable substitute is:
Answer: A. Substitution underlies the sales comparison approach — value is capped by the price of a comparable alternative.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Start with sold comparables, adjust the COMPS — never the subject
- Comp is BETTER than subject → SUBTRACT from comp's price (CBS: Comp Better Subtract)
- Comp is worse → add to comp's price
- Best for: houses & land; required inputs: recent, nearby, arm's-length sales
- Weight the comp needing the fewest/smallest adjustments most heavily
Sales Comparison — Adjust the COMP: FAQs
Is Sales Comparison — Adjust the COMP on the real estate exam?
Yes. Valuation & Appraisal is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
