What is the main focus of the direct comparison approach in property valuation?

The direct comparison approach in property valuation centers on valuing a property by examining the sale prices of similar properties that have recently been sold in the market. This method involves comparing features such as location, size, age, and condition to ensure valid comparisons are made between the target property and the comparable sales. By analyzing these similar properties, valuers can establish a market-based value for the subject property that reflects what buyers have recently paid for comparable homes.

The other choices do not accurately capture the essence of the direct comparison approach. Estimating replacement costs pertains more to the cost approach of valuation, where the focus is on what it would cost to replace the property. Calculating the resale value based on current market trends suggests a general economic analysis rather than a specific comparison with sold properties. Determining value based on potential rental income is an aspect of the income approach and is not relevant to the direct comparison method, which prioritizes actual sales data.