What does the sales comparison approach primarily rely on?

The sales comparison approach is a fundamental method used in real estate appraisal that primarily relies on recent sales of comparable properties. This approach utilizes data from similar properties that have sold in the same market area to derive an estimate of value for the subject property. By analyzing the sale prices of these comparable properties, appraisers can make adjustments based on differences in features such as location, size, condition, and amenities. This method is particularly effective in active real estate markets where comparable sales are readily available, as it reflects the current market conditions and buyer behavior.

While the other options mention important aspects of property valuation, they do not specifically align with the core principle of the sales comparison approach. The potential future value of a property, the cost of constructing new properties, and market trends may play a role in overall valuation considerations, but they are not the primary focus of this approach. Instead, it emphasizes the importance of understanding how similar properties have been priced in recent transactions to establish a value for the property in question.