Which method is used to determine the fair market value of real estate through comparison?

The sales comparison approach is the correct method for determining the fair market value of real estate through comparison. This approach involves evaluating the sale prices of similar properties in the same area that have recently sold. By analyzing these comparable sales, an appraiser can estimate the value of the subject property based on how much buyers have been willing to pay for similar properties under comparable conditions.

This method is particularly effective because it reflects current market conditions and buyer preferences, providing a realistic and data-driven valuation. It considers factors such as location, size, age, and features of the properties being compared, allowing for adjustments to be made for differences, which further fine-tunes the valuation process.

The other methods, while useful in certain contexts, do not focus on direct comparison in the same way. The cost approach estimates value based on the cost to replace or reproduce the property, deducting for depreciation but not comparing it with actual sales transactions. The income approach centers on the income-generating potential of a property, often utilized for investment properties rather than considering market sales directly. The market analysis approach may involve broader assessments of market conditions but doesn't specifically focus on comparable sales as a primary means of valuation. Thus, the sales comparison approach directly aligns with the requirement to determine fair market value