Why do buyers typically use the market data approach when purchasing a home?

Buyers typically use the market data approach when purchasing a home because they engage in a comparative analysis of the property they are interested in with similar properties in the area, also known as "comps." This method allows buyers to assess the value of a home based on recent sales of similar homes, considering factors such as location, size, condition, and features.

By comparing the house with others that have recently sold, buyers can make more informed decisions about what constitutes a fair price for the property in question. This approach helps mitigate the risks associated with overpaying and ensures that the buyer is making a sound investment based on real market conditions rather than personal feel or aesthetic preferences alone. It reflects a reliance on objective data rather than subjective factors or trust in an agent alone.