When evaluating a property, what does the direct comparison approach primarily rely on?

The direct comparison approach primarily relies on comparative sales data from recently sold similar properties because it assesses the value of a property based on the prices achieved for comparable properties in the same market. This method assumes that similar properties in proximity and characteristics will sell for similar amounts, thereby providing a benchmark for valuing the property in question.

This approach involves a thorough analysis of sale prices, considering elements such as location, size, condition, and amenities, which ensures a relevant and accurate evaluation. By leveraging this data, appraisers can determine a fair market value that reflects current market conditions and buyer perceptions.

While analyzing rental income from similar properties can be another method of valuation, it focuses more on investment potential rather than direct property valuation. Previous appraisals might provide historical context but may not reflect current market dynamics. Assessment of unique property features may also play a role but is typically integrated into the overall comparison rather than being the primary reliance in the direct comparison approach.