What term best describes the appraisal method based on comparing a property to similar properties?

The appraisal method that best fits the description of comparing a property to similar properties is the sales comparison approach. This method relies on the principle of substitution, where the value of a property is determined based on the sales prices of comparable properties that have recently sold in the same market.

In practice, appraisers locate similar properties—often referred to as "comps"—that share characteristics such as size, location, age, and amenities. By analyzing these comparable sales, the appraiser can make adjustments for differences and derive a value estimate for the property in question. This approach is particularly effective in active real estate markets where sufficient data on similar property sales is readily available.

While the income approach focuses on the potential revenue-generating capability of income-producing properties, and the cost approach evaluates the cost to replace the property minus depreciation, they do not specifically emphasize the comparison aspect as the sales comparison approach does. Market analysis, although related, typically involves a broader evaluation of the current real estate market trends and conditions, rather than solely focusing on individual property comparisons.