What is the primary focus of the Sales Comparison Approach in real estate appraisal?

The primary focus of the Sales Comparison Approach in real estate appraisal is on comparing actual sales of similar properties. This method involves analyzing the sale prices of recently sold properties that are comparable to the subject property in terms of characteristics such as location, size, age, and features. By examining these comparable sales, appraisers can determine a fair market value for the property being appraised. This approach relies heavily on the principle of substitution, which posits that a buyer would not pay more for a property than the price of a comparable property with similar attributes.

Other methodologies, like estimating replacement cost or calculating future income potential, serve different purposes and are not the focus of the Sales Comparison Approach. Similarly, evaluating expenses related to property maintenance is an operational analysis rather than an appraisal strategy. These other aspects may come into play in different appraisal methods but do not pertain to the Sales Comparison Approach.