Valuation: real estate exam study notes

Valuation covers what makes property valuable, the three appraisal approaches, and the difference between an appraisal and a broker's opinion or CMA.

Updated 2026-09-23 · 2 sources · By the RealEstateExamKit team

How much it counts

VendorOutline area (salesperson national)
Pearson VUEProperty value and appraisal (11) of 80 scored items
PSIValuation 8% of the national portion

Study notes

  • Sales comparison approach: adjust the comparable, never the subject. Comp better than subject = subtract; worse = add.
  • Cost approach: land value + (reproduction or replacement cost - depreciation). Best for new or special-purpose buildings.
  • Income approach: value = NOI / cap rate; GRM for small residential rentals. See cap rate math.
  • Depreciation types: physical deterioration, functional obsolescence, external (economic) obsolescence - external is usually incurable.

Exam traps

  • Adjusting the wrong property. Adjustments go on the comps.
  • Market value vs price vs cost. Three different things.
  • CMA is not an appraisal. Licensees must not represent a CMA as one.

Educational summary, not legal advice. State law can change the rule - your state portion tests your state’s version.

Find out where you stand in 10 minutes

25 original questions, a predicted score by topic, and a day-by-day plan to your exam date. Free.

Start the free readiness check

Sources

  1. Pearson VUE - Texas Real Estate Candidate Handbook (national salesperson outline, effective March 1, 2025) (accessed 2026-09-23)
  2. PSI - Georgia Real Estate Commission Candidate Information Bulletin (national portion outline) (accessed 2026-09-23)