Which method focuses on comparing the subject property with similar properties recently sold?

The method that focuses on comparing the subject property with similar properties recently sold is the Market Comparison Approach. This approach is based on the principle of substitution, which holds that a reasonable buyer would not pay more for a property than they would have to pay for a comparable one in a similar condition.

In applying this approach, assessors look for comparable sales, often referred to as "comps," that have similar attributes to the subject property, such as location, size, condition, and amenities. By analyzing the sale prices of these properties, adjustments are made to account for differences, allowing for a more accurate valuation of the subject property based on market activity.

This method is particularly useful in real estate markets where there are sufficient comparable properties, making it a favored approach for residential properties. It reflects current market conditions effectively and directly links the property's value to what buyers in the same market are willing to pay.

In contrast, the cost approach focuses on determining what it would cost to replace or reproduce the property, minus depreciation, while the income approach is geared towards estimating value based on the income the property can generate. Mass appraisal involves valuing many properties at once, often for taxation purposes, using statistical and analytical techniques rather than the direct sales comparison method.