In the sales comparison approach, an appraiser should never simply average the indicated values of the comparable sales.

• A. False
• B. Sometimes
• C. True
• D. Not necessarily

Answer: (C)

The key idea is that each comparable’s price must be adjusted to account for differences with the subject property before forming any value estimate. Comps vary in size, features, condition, location, and even the date of sale. If you simply average the unadjusted sale prices, you ignore these differences and can produce a biased or inaccurate value. Instead, you adjust each comp to reflect how it would price the subject, then reconcile those adjusted values—often with weights—to derive a single estimate. That’s why the statement is true: you should never simply average the indicated values without adjustments. In practice, even if the adjusted values are similar, the process relies on adjustments and a thoughtful reconciliation rather than a straight mean.