Which statement about non-comparability in the sales comparison approach is true?

• A. The appraiser may discard the sales
• B. The appraiser must adjust every sale
• C. All non-comparable sales must be used
• D. Non-comparable sales invalidate the analysis

Answer: (A)

In the sales comparison approach, you aim to base value on sales that are truly similar to the subject in key aspects such as location, property type, size, condition, and the terms of sale. When a sale is not sufficiently comparable—perhaps it involves a unique property, unusual financing, or a non-arm's-length transaction—it isn’t appropriate to force it into the analysis. In those cases, the best practice is to discard the sale from the dataset rather than try to adjust it to fit. This keeps the adjustments meaningful and the resulting value estimate more credible.

You aren’t required to adjust every sale you find, and you aren’t obligated to use all sales that appear in the market. The point is to rely on data that truly reflects how the subject would be valued in typical market conditions. Also, the fact that some sales are non-comparable does not ruin the analysis; you can proceed with the remaining comparable sales to derive a reasonable estimate.

So the statement that the appraiser may discard the sales reflects the professional judgment allowed in ensuring the analysis rests on truly comparable data.