- Official section
- National III: Valuation
- Broker weight
- 8% of the national broker portion
- Expected scored items
- Valuation accounts for about 8 of 100 items
Illinois exam glossary
Sales comparison approach
This approach feels simple until the first adjustment appears. The reliable way through is to stop asking which home is better in the abstract. Compare each sale with the subject, one market-relevant difference at a time, adjust the sale in the direction a buyer would react, and then explain which evidence deserves trust.
Last updated: August 1, 2026
What does this exam area cover?
Short answer: The sales comparison approach develops a value indication from sales and other market evidence involving properties that compete with the subject. The analyst defines the assignment, studies the subject and market, verifies transactions, selects the best comparables, adjusts each comparable for market-supported differences, and reconciles the indications. Adjust the comparable: add when it is inferior, subtract when it is superior. Adjustments reflect market reaction, not an automatic feature cost, percentage, or price per square foot.
This guide follows the Illinois Real Estate Appraiser Licensing Act, current USPAP access from The Appraisal Foundation, the PSI Illinois exam outline, and Fannie Mae Selling Guide sections published through June 3, 2026, all checked through August 1, 2026. Fannie Mae's three-closed-comparable, reporting, age, adjustment, and range rules are clearly labeled as lender-program requirements. They are valuable current practice examples, but they are not presented as universal statutes governing every Illinois valuation assignment.
What is on the official outline?
- Topic
- Define the assignment first
- What to know
- Client, intended user, intended use, subject, property interest, value definition, effective date, relevant characteristics, assignment conditions, scope of work, report, and jurisdictional requirements
- Best exam move
- A sale cannot be comparable until you know what interest, value, date, and use the assignment calls for.
- Topic
- Identify the property rights
- What to know
- Fee simple, leased fee, leasehold, life estate, easement, restriction, mineral right, air right, water right, tenancy, condominium interest, cooperative interest, and partial interest
- Best exam move
- Do not compare a fee-simple subject with a leased-fee sale as though the rights are identical.
- Topic
- Confirm highest and best use
- What to know
- Legally permissible, physically possible, financially feasible, maximally productive, existing use, alternative use, vacant land, improved property, demolition, conversion, and interim use
- Best exam move
- Sales based on a different highest and best use may belong to another market rather than the subject's comparison set.
- Topic
- Study the market area
- What to know
- Demand source, competitive supply, neighborhood, competing neighborhood, price range, property type, buyer profile, employment, access, school boundary, amenity, nuisance, trend, inventory, exposure time, and sale velocity
- Best exam move
- Market area follows buyer competition and demand, not a circle drawn at an arbitrary distance.
- Topic
- Research the subject deeply
- What to know
- Site, zoning, legal use, utilities, topography, flood zone, view, design, quality, age, condition, room count, gross living area, basement, garage, accessory unit, renovation, energy feature, and prior sale
- Best exam move
- A missed subject fact leads to bad comparable selection and bad adjustment math later.
- Topic
- Gather the full evidence set
- What to know
- Closed sale, contract sale, pending sale, active listing, withdrawn listing, expired listing, subject contract, prior subject sale, land sale, rental evidence, builder sale, foreclosure, short sale, and market interview
- Best exam move
- Closed sales show completed bargains, while contracts and listings help explain the market near the effective date.
- Topic
- Verify each transaction
- What to know
- Buyer, seller, broker, closing document, deed, MLS, assessor, tax record, contract date, closing date, price, financing, concession, personal property, relationship, motivation, exposure, and arms-length status
- Best exam move
- A recorded price alone does not reveal concessions, unusual motivation, or what property rights actually transferred.
- Topic
- Select competitive comparables
- What to know
- Same market participants, similar use, rights, location, site, design, quality, condition, size, age, utility, amenities, sale date, price range, and transaction conditions
- Best exam move
- Choose the best substitutes, not merely the closest addresses or the sales that support a desired number.
- Topic
- Adjust transactional differences
- What to know
- Property rights conveyed, financing terms, sales concessions, conditions of sale, expenditures immediately after purchase, non-realty items, contract date, closing date, and market conditions
- Best exam move
- Normalize the transaction before comparing physical real estate characteristics.
- Topic
- Adjust property differences
- What to know
- Location, site, view, design, quality, age, condition, room count, gross living area, basement, garage, porch, pool, accessory unit, energy feature, functional utility, and external influence
- Best exam move
- Adjust only differences that market participants recognize and that the evidence can support.
- Topic
- Apply the direction rule
- What to know
- Comparable inferior add, comparable superior subtract, no subject adjustment, positive sign, negative sign, sequence, percentage adjustment, dollar adjustment, and adjusted sale price
- Best exam move
- Translate every grid line into a sentence: the comparable is inferior or superior to the subject, so add or subtract from the comparable.
- Topic
- Derive market reaction
- What to know
- Paired-sales analysis, grouped data, regression, sensitivity analysis, trend analysis, matched sets, rent difference capitalization, depreciated cost support, interviews, ranking, bracketing, and qualitative comparison
- Best exam move
- An adjustment is a supported market inference, not a memorized national dollar amount.
- Topic
- Analyze concessions
- What to know
- Seller-paid cost, rate buydown, discount point, origination fee, assessment payment, personal property, repair credit, atypical financing, cash equivalency, market impact, and no automatic dollar-for-dollar rule
- Best exam move
- Adjust for the price effect attributable to the concession, which may differ from the seller's cost.
- Topic
- Analyze market conditions
- What to know
- Effective date, comparable contract date, appreciation, decline, stability, seasonality, index, paired sales, resale, regression, price trend, supply, demand, mortgage rate, and evidence for zero adjustment
- Best exam move
- Measure change from the comparable's relevant transaction date to the appraisal's effective date.
- Topic
- Calculate net and gross adjustment
- What to know
- Signed total, absolute total, percentage, sale price denominator, offsetting adjustments, comp similarity, review signal, support, and no automatic universal cutoff
- Best exam move
- Net shows overall direction; gross shows how much adjustment work occurred without cancellation.
- Topic
- Use qualitative analysis
- What to know
- Superior, similar, inferior, relative comparison, ranking, bracketing, trend, plus factor, minus factor, uncertain amount, sparse data, complex property, and narrative support
- Best exam move
- When a precise amount is not credible, a transparent qualitative relationship may be more honest than false precision.
- Topic
- Reconcile the indications
- What to know
- Adjusted range, relevance, reliability, similarity, verification, number of adjustments, support quality, recency, bracketing, weighting, outlier, final indication, and explanation
- Best exam move
- Reconciliation is reasoned weighting, not automatic averaging or choosing the sale closest to the answer desired.
- Topic
- Keep analysis objective
- What to know
- Facts, market evidence, protected class, race, color, religion, sex, disability, familial status, national origin, demographic proxy, biased language, predetermined value, pressure, independence, and review
- Best exam move
- Property value analysis follows relevant property and market evidence, never protected-class composition or transaction pressure.
- Topic
- Separate exam rules from program policy
- What to know
- Principle of substitution, adjustment direction, valuation logic, Fannie Mae three closed sales, 12-month guidance, form reporting, value range, lender overlay, USPAP, Illinois licensure, and assignment-specific standard
- Best exam move
- Know the durable valuation concept, then identify when a source imposes a narrower program requirement.
Which distinctions produce the most mistakes?
- Terms
- Sales comparison approach vs. CMA
- Difference
- The sales comparison approach is an appraisal valuation method. A CMA is a broker's market analysis for a permitted brokerage purpose and is not an appraisal.
- Question cue
- Appraisal approach versus brokerage market analysis.
- Terms
- Comparable sale vs. competitive listing
- Difference
- A comparable sale records a completed transaction. A competitive listing shows current seller expectations and the subject's asking-price competition but not a completed bargain.
- Question cue
- Closed evidence versus current offering.
- Terms
- Sale price vs. market value
- Difference
- Sale price is the amount paid in one transaction. Market value is an opinion under a defined set of market conditions and an effective date.
- Question cue
- Historical fact versus defined value opinion.
- Terms
- Market area vs. neighborhood
- Difference
- Market area is the geographic region from which demand comes and where competition is located. A neighborhood is one local grouping and may not contain every valid substitute.
- Question cue
- Buyer competition can cross a neighborhood boundary.
- Terms
- Transactional adjustment vs. property adjustment
- Difference
- A transactional adjustment addresses rights, financing, motivation, concessions, expenditures, or time. A property adjustment addresses location or physical and economic characteristics.
- Question cue
- Terms of the deal versus attributes of the real estate.
- Terms
- Cost difference vs. value adjustment
- Difference
- Cost difference measures expense. A value adjustment measures the market's price reaction to the feature difference and may be lower, equal, higher, or unsupported by the cost figure.
- Question cue
- What it costs is not automatically what buyers pay.
- Terms
- Quantitative vs. qualitative adjustment
- Difference
- Quantitative analysis expresses a supported amount or percentage. Qualitative analysis ranks or describes the evidence when a credible exact amount is unavailable.
- Question cue
- Number versus supported relationship.
- Terms
- Net adjustment vs. gross adjustment
- Difference
- Net adjustment is the algebraic sum with positive and negative signs. Gross adjustment adds absolute amounts and ignores cancellation.
- Question cue
- Signed result versus total adjustment activity.
- Terms
- Adjustment vs. reconciliation
- Difference
- Adjustment makes a comparable more directly comparable to the subject. Reconciliation evaluates the resulting indications and decides how much weight each deserves.
- Question cue
- Normalize the evidence, then weigh the evidence.
- Terms
- Contract date vs. closing date
- Difference
- The contract date is when price terms were negotiated. The closing date is when the transaction was completed. Market-condition analysis often focuses on when the price was set.
- Question cue
- Negotiated market point versus settlement point.
- Terms
- Recency vs. similarity
- Difference
- Recency measures closeness in time. Similarity measures competitiveness in rights, use, location, and characteristics. Neither factor should be considered alone.
- Question cue
- Newest is not automatically best.
- Terms
- Bracketing vs. averaging
- Difference
- Bracketing places the subject characteristic between inferior and superior evidence. Averaging combines numbers mechanically and can hide differences in reliability.
- Question cue
- Surround the feature versus blend the conclusions.
The C-O-M-P-S comparison method
- Clarify the assignment: define the client, intended use, subject, interest, value definition, effective date, relevant characteristics, highest and best use, scope, standards, and reporting requirement.
- Observe the market: research buyer competition, supply, demand, trends, subject facts, legal use, prior transfers, current contract, sale and listing history, and every location or property influence that could affect value.
- Match and verify: gather a broad evidence set, confirm source reliability and transaction facts, then select sales that appeal to the same market participants rather than chasing proximity, recency, or a target price alone.
- Price the differences: compare each sale with the subject, address transaction and market-condition differences, derive market-supported location and property adjustments, add for comparable inferiority, subtract for superiority, and show the math.
- Support the grid: document sources, methods, concessions, contract dates, zero adjustments, qualitative judgments, net and gross totals, unusual comparables, conflicting data, and any assignment-specific program requirements.
- Synthesize the result: examine the adjusted range, weigh relevance and reliability, explain outliers and weighting, reconcile rather than mechanically average, and report a conclusion consistent with the applicable assignment evidence.
- Element
- Property rights
- Question
- Did the same real property interest transfer?
- Typical analysis
- Fee simple, leased fee, leasehold, restrictions
- Element
- Financing
- Question
- Did financing affect the cash-equivalent price?
- Typical analysis
- Below-market terms, buydown, seller financing
- Element
- Sale conditions
- Question
- Was motivation or relationship unusual?
- Typical analysis
- Distress, related party, assemblage, special purchaser
- Element
- Immediate expenditure
- Question
- What must the buyer spend right after purchase?
- Typical analysis
- Cure, demolition, repair, environmental work
- Element
- Market conditions
- Question
- Did the market change after price was negotiated?
- Typical analysis
- Contract-date-to-effective-date trend
- Element
- Location and site
- Question
- How does buyer reaction differ by place and land?
- Typical analysis
- Access, view, lot, zoning, nuisance, flood risk
- Element
- Improvements
- Question
- Which physical or functional differences matter?
- Typical analysis
- Quality, condition, area, rooms, garage, utility
- Element
- Non-realty items
- Question
- Does the price include something outside real property?
- Typical analysis
- Furniture, equipment, business value, credit
How do the rules work in scenarios?
The comparable lacks the subject's garage
Scenario: The subject has a two-car garage. A comparable sold for $410,000 without a garage. Paired market evidence supports a $24,000 garage contribution.
- The comparable is inferior to the subject on the garage line.
- Use CIA: Comparable Inferior, Add.
- $410,000 + $24,000 = $434,000 adjusted indication before other differences.
Answer: Add $24,000 to the comparable for an adjusted price of $434,000.
The comparable has the better view
Scenario: A comparable sold for $625,000 with an unobstructed lake view. The subject has an interior view. Market analysis supports a $55,000 lake-view premium.
- The comparable is superior to the subject on view.
- A superior comparable receives a negative adjustment.
- $625,000 - $55,000 = $570,000 adjusted indication before other differences.
Answer: Subtract $55,000 from the comparable for an adjusted price of $570,000.
Feature cost differs from buyer reaction
Scenario: A seller spent $70,000 on a high-end outdoor kitchen. Paired sales suggest typical buyers pay only $22,000 more for a similar amenity in this market.
- The $70,000 figure is cost, not automatically value.
- The sales comparison approach follows market reaction.
- The evidence supports $22,000 if the data and comparison are credible.
Answer: Use the market-supported $22,000 contribution, not the $70,000 construction cost.
A concession does not require a dollar-for-dollar adjustment
Scenario: A comparable sold for $500,000 with the seller paying $15,000 toward financing costs. Verified market analysis indicates the concession raised the price by $9,000.
- The concession cost and its price effect are different questions.
- Current Fannie Mae guidance requires the adjustment to reflect market reaction.
- $500,000 - $9,000 = $491,000 cash-equivalent indication before other adjustments.
Answer: Apply a $9,000 negative adjustment based on the supported price effect.
Net and gross adjustment tell different stories
Scenario: A $400,000 comparable receives adjustments of +$30,000, -$20,000, and +$5,000.
- Net adjustment is +$30,000 - $20,000 + $5,000 = +$15,000.
- Gross adjustment is $30,000 + $20,000 + $5,000 = $55,000.
- The adjusted price is $415,000, while the gross total reveals more comparison work than the net alone.
Answer: Net adjustment is +$15,000, gross adjustment is $55,000, and adjusted price is $415,000.
The older sale is the better substitute
Scenario: A one-month-old sale is a remodeled waterfront home. A nine-month-old sale matches the subject's inland location, design, condition, and size and can be supported with a time adjustment.
- Recency is important but does not erase major comparability problems.
- The older sale may require fewer and better-supported adjustments.
- Current Fannie Mae guidance permits an older best comparable with explanation.
Answer: The nine-month-old sale may deserve greater weight if its selection and time adjustment are supported.
Reconciliation gives more weight to the stronger sale
Scenario: Adjusted indications are $482,000, $489,000, and $515,000. The first two are verified same-market sales with modest adjustments. The third is from a competing area and needs large location and condition adjustments.
- The arithmetic average is $495,333, but averaging does not test reliability.
- The first two sales are more similar and their adjustments are better supported.
- The third can remain useful but receive less weight with explanation.
Answer: Reconcile near the supported first two indications rather than defaulting to the arithmetic average.
What are the common exam traps?
- Trap
- Adjusting the subject
- Correction
- Keep the subject as the benchmark and adjust each comparable sale toward it.
- Trap
- Giving a garage an automatic plus sign
- Correction
- First ask which property has the garage. Add only when the comparable is inferior; subtract when it is superior.
- Trap
- Using construction cost as the adjustment
- Correction
- Derive the market's reaction. Cost can be supporting evidence but is not automatically the contribution to value.
- Trap
- Using one price-per-square-foot rule
- Correction
- Area adjustment must reflect the subject's competitive market, range, utility, and evidence, not a national shortcut.
- Trap
- Picking the nearest sale
- Correction
- Proximity is one factor. Select sales that are genuinely competitive in rights, use, location, and characteristics.
- Trap
- Picking only the newest sale
- Correction
- A slightly older highly similar sale can be stronger than a recent sale requiring many speculative adjustments.
- Trap
- Assuming listings prove value
- Correction
- Listings show competition and seller expectations. They are not completed transactions and should be interpreted accordingly.
- Trap
- Ignoring contract dates
- Correction
- The contract date often shows when the comparable's price was negotiated and is central to market-condition analysis.
- Trap
- Deducting every concession dollar for dollar
- Correction
- Measure the price effect attributable to the concession. It can differ from the seller's expense.
- Trap
- Treating zero as no analysis
- Correction
- A zero adjustment should mean evidence indicates no measurable market reaction, not that the difference was overlooked.
- Trap
- Confusing net with gross
- Correction
- Net preserves signs. Gross adds absolute amounts and shows total adjustment activity without cancellation.
- Trap
- Applying fixed adjustment limits
- Correction
- Current Fannie Mae policy has no specific net or gross limits. Large adjustments invite scrutiny but do not automatically disqualify a sale.
- Trap
- Averaging all adjusted prices
- Correction
- Weigh the quality, relevance, support, and reliability of each indication and explain the reconciliation.
- Trap
- Calling three sales a universal law
- Correction
- Fannie Mae requires three closed comparables on its applicable forms. Other assignments follow their own law, standards, scope, and credible-evidence needs.
- Trap
- Using demographics as value evidence
- Correction
- Analyze property and market factors that lawfully affect competition, not protected classes or demographic proxies.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. Which principle is the foundation of the sales comparison approach?
- Substitution
- Contribution
- Anticipation
- Balance
Show answer and explanation
Answer: Substitution
Buyers compare available substitutes and generally resist paying more than the cost of an equally desirable alternative.
2. The comparable lacks a fireplace that the subject has. What is the adjustment direction?
- Add to the comparable
- Subtract from the comparable
- Add to the subject
- No analysis is needed
Show answer and explanation
Answer: Add to the comparable
The comparable is inferior. Comparable Inferior, Add.
3. The comparable has a superior view. What should the analyst do?
- Subtract a market-supported amount from the comparable
- Add the feature cost to the comparable
- Subtract from the subject
- Always discard the comparable
Show answer and explanation
Answer: Subtract a market-supported amount from the comparable
A superior comparable is adjusted downward toward the subject.
4. A comparable has +$25,000 and -$10,000 adjustments. What are net and gross adjustments?
- +$15,000 net and $35,000 gross
- $35,000 net and +$15,000 gross
- +$15,000 net and $15,000 gross
- $25,000 net and $10,000 gross
Show answer and explanation
Answer: +$15,000 net and $35,000 gross
Net keeps the signs; gross adds $25,000 and $10,000 as absolute amounts.
5. What should determine an adjustment amount?
- Market reaction to the difference
- The feature's original cost in every case
- A national rule of thumb
- The amount needed to reach contract price
Show answer and explanation
Answer: Market reaction to the difference
The approach models buyer and seller behavior in the relevant market.
6. Which statement about current Fannie Mae policy is correct?
- It has no specific net or gross adjustment limits
- Every gross adjustment above 25 percent is prohibited
- Every comparable must be within one mile
- Every sale must close within six months
Show answer and explanation
Answer: It has no specific net or gross adjustment limits
Adjustment magnitude cannot be the sole test of acceptability; the analysis and market support matter.
7. Why verify a comparable sale beyond the recorded deed price?
- To understand sale conditions, concessions, rights, and property facts
- To guarantee the seller made a profit
- To avoid all adjustments
- To replace the effective date
Show answer and explanation
Answer: To understand sale conditions, concessions, rights, and property facts
A price record alone may omit the facts needed to judge whether and how the transaction compares.
8. Which comparable is automatically best?
- None; selection depends on competitive similarity and reliable evidence
- The nearest sale
- The newest sale
- The sale with the highest price
Show answer and explanation
Answer: None; selection depends on competitive similarity and reliable evidence
Distance, recency, and price are relevant but cannot replace complete comparability analysis.
9. What is reconciliation?
- Reasoned weighing of value indications and supporting evidence
- Automatic averaging of every adjusted price
- Adding all gross adjustments
- Changing the effective date
Show answer and explanation
Answer: Reasoned weighing of value indications and supporting evidence
The analyst considers applicability, relevance, reliability, and support before reaching the final indication.
10. What does current Fannie Mae guidance generally require in the sales comparison grid?
- At least three closed comparable sales
- Exactly one listing and no sales
- Only sales from the same street
- A mandatory arithmetic average
Show answer and explanation
Answer: At least three closed comparable sales
This is a Fannie Mae program requirement for its applicable appraisal forms, not a universal statute for every assignment.
How should you study this area?
- Session
- Session 1
- Focus
- Lock the direction rule
- Proof you are ready
- Complete 40 one-line comparisons by stating comparable inferior or superior, choosing add or subtract, and explaining the buyer reaction aloud.
- Session
- Session 2
- Focus
- Build the evidence set
- Proof you are ready
- Rank 20 candidate sales by rights, use, market area, location, site, design, quality, condition, size, utility, transaction terms, and date.
- Session
- Session 3
- Focus
- Separate transaction and property adjustments
- Proof you are ready
- Classify 50 facts as rights, financing, sale conditions, immediate expenditure, market conditions, location, site, improvement, economic, use, or non-realty items.
- Session
- Session 4
- Focus
- Do the math
- Proof you are ready
- Solve 25 adjusted-price problems and 15 net-versus-gross problems without reversing a sign or confusing signed and absolute totals.
- Session
- Session 5
- Focus
- Defend market support
- Proof you are ready
- For 15 proposed adjustments, identify paired sales, grouped data, trend, regression, interviews, ranking, bracketing, cost support, or insufficient evidence.
- Session
- Session 6
- Focus
- Run C-O-M-P-S
- Proof you are ready
- Complete two full comparison grids, reconcile the indications in writing, then score at least 90 percent on the original questions and explain every miss.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
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Questions students ask about Sales Comparison Approach: Illinois Exam Guide
What is the sales comparison approach in real estate?
The sales comparison approach is a valuation method that develops a value indication by comparing the subject property with competitive properties that sold, went under contract, or were offered for sale. The appraiser verifies the market evidence, identifies meaningful differences, adjusts the comparable evidence when supported, and reconciles the resulting indications.
What principle supports the sales comparison approach?
The principle of substitution. A typical buyer will not pay more for one property than the cost of acquiring an equally desirable substitute, assuming reasonable knowledge and no unusual delay. That principle explains why competitive sales can provide evidence of what the subject is worth.
How do you adjust a comparable sale?
Adjust the comparable, not the subject. If the comparable is superior on a value-relevant characteristic, subtract the market-supported amount from its price. If the comparable is inferior, add the market-supported amount. The goal is to show what the comparable would indicate if it had the subject's relevant characteristics.
What is the easiest way to remember adjustment direction?
Use CIA: Comparable Inferior, Add. The matching rule is Comparable Superior, Subtract. Always state which property has the feature before choosing the sign. A garage has no automatic plus or minus sign until you know whether the comparable or subject has it.
Does an adjustment equal the cost of the feature?
Not automatically. An adjustment should reflect the market's reaction to the difference. A patio may cost $30,000 to build while buyers in that market pay only $12,000 more for otherwise similar homes with that patio. The supported adjustment would follow market evidence, not construction cost alone.
Must comparable sales be in the same neighborhood?
No universal rule requires every comparable to sit inside one neighborhood boundary. The best comparables should compete for the same market participants and have relevant physical, legal, and locational similarity. Current Fannie Mae guidance permits competing market areas when appropriate, but requires explanation and any supported location adjustment.
How many comparable sales are required?
There is no single count that governs every sales comparison assignment. The appraiser needs enough relevant evidence for a credible result under the assignment conditions. For Fannie Mae appraisal forms, current Selling Guide policy requires at least three closed comparable sales, with additional sales, contracts, and listings used when helpful. That is program policy, not a universal Illinois exam law.
How old can a comparable sale be?
Recency matters, but similarity can matter more. Current Fannie Mae guidance says sales closed within the prior 12 months should be used, yet permits older sales when they are the best indicators and the appraiser explains the choice. A recent poor substitute is not automatically stronger than an older highly competitive sale.
What are net and gross adjustments?
Net adjustment is the signed total of all adjustments. Gross adjustment is the total of their absolute amounts, ignoring signs. A plus $20,000 and minus $15,000 adjustment produce a plus $5,000 net adjustment and a $35,000 gross adjustment. Large totals can prompt closer review, but current Fannie Mae policy has no fixed net or gross adjustment limits.
Should adjusted sale prices be averaged?
Not mechanically. Reconciliation weighs the relevance, similarity, verification, adjustment support, and reliability of each indication. Current Fannie Mae guidance says reconciliation must not be an averaging technique unless a properly explained weighted-average technique is used. The most similar and best-supported comparable may deserve the greatest weight.
Are these official PSI questions or an appraisal?
No. The practice questions are original, and the primary sources were checked through August 1, 2026. This is exam education, not an appraisal, appraisal review, comparative market analysis, broker price opinion, or advice for a live transaction. Actual valuation work depends on the assignment, property rights, effective date, market evidence, applicable standards, and qualified professional judgment.
Primary sources
- PSI Illinois Candidate Information Booklet effective June 24, 2026
- 225 ILCS 458, current Illinois Real Estate Appraiser Licensing Act of 2002
- Illinois Department of Financial and Professional Regulation, current Real Estate Appraisal licensing resources
- 12 CFR 34.42, current federal market value and appraisal definitions
- The Appraisal Foundation, current 2024 Uniform Standards of Professional Appraisal Practice access
- Fannie Mae Selling Guide B4-1.3-07, current sales comparison analysis, verification sources, and prior-sale reporting
- Fannie Mae Selling Guide B4-1.3-08, current comparable selection, minimum count, age, and competing-market guidance
- Fannie Mae Selling Guide B4-1.3-09, current market-supported adjustment, concession, time, and indicated-range policy
- Fannie Mae Selling Guide B4-1.3-11, current valuation analysis and reconciliation requirements
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.