Which appraisal method relies heavily on actual sales data from comparable properties?

The sales comparison approach is the appraisal method that primarily depends on actual sales data from comparable properties. This approach involves evaluating recent sales of similar properties—those that are alike in terms of size, location, and features—to determine the market value of the subject property. By analyzing these comparable sales, appraisers can establish a supported value based on real transaction data, making this method particularly effective in active real estate markets where sufficient comparable sales data is available.

In contrast, the income approach focuses on the property’s income-generating potential, calculating value based on the present value of expected future cash flows. The cost approach estimates value by calculating the cost to replace or reproduce the property, minus any depreciation. The market analysis approach, while it may involve sales data, is broader and often encompasses various metrics and trends affecting the overall market, rather than strictly comparing similar property sales. Each of these other methods serves different purposes and contexts, but none leverage actual sales figures as directly as the sales comparison approach does.