What method estimates a property's value using the sale prices of comparable properties?

The method that estimates a property's value using the sale prices of comparable properties is known as the sales comparison approach. This approach involves looking at recent sales of similar properties in the same area to determine a fair market value. By examining the attributes of these comparable properties—such as size, location, condition, and features—assessors can establish a baseline for what a similar property should be valued.

This method is particularly effective in active real estate markets where there are numerous sales data available. It takes into account adjustments made for differences between the subject property and the comparables, ensuring that the estimate reflects what buyers are currently willing to pay for similar homes.

The cost approach, on the other hand, focuses on determining the cost to replace or reproduce the property minus depreciation, while the income approach is primarily used for commercial properties or investment real estate, relying on the income-generating potential of the property. Market analysis, while related to evaluating market conditions and trends, does not specifically focus on the use of comparable sales data to determine property value like the sales comparison approach does.