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

The primary purpose of the Sales Comparison Approach in real estate appraisal is to analyze recent sale prices of similar properties to determine value. This method is widely used because it relies on actual market data, which provides a solid basis for estimating the value of a property. By identifying comparable properties—those that are similar in size, condition, location, and features—the appraiser can establish a value that reflects current market conditions. This approach is particularly effective in active markets where there are ample sales data available for comparison.

In contrast, evaluating the cost of materials or assessing the condition of a property are more aligned with other appraisal methods, such as the Cost Approach and the Income Approach. Estimating the total square footage pertains more to property measurement rather than directly influencing market value through comparative analysis.