Which method compares the property being appraised to comparable vacant parcels that have sold recently?

The method that compares the property being appraised to comparable vacant parcels that have sold recently is the direct sales comparison method. This approach involves examining the sales of similar properties (comparables) to derive a value for the subject property. It is particularly effective in markets where there is an active supply of similar properties, providing real-time data that reflects current market conditions.

By analyzing the sales prices of comparable vacant parcels, appraisers can identify trends and adjustments needed due to differences in factors such as location, size, zoning, and topography. This method relies on the principle of substitution, which states that a buyer will not pay more for a property than the cost of acquiring a comparable one.

While the market approach broadly refers to analyzing market data to determine value, the direct sales comparison is more specific to using recent sales data of comparable properties for valuation. The income approach focuses on the income potential a property generates, which is not applicable when valuing vacant parcels where such potential is not present. The cost approach estimates value based on the cost to replace or reproduce the property, considering depreciation, rather than on sales comparisons.