Which of the following processes involves analyzing property variations to identify value?

The Sales Comparison Approach is centered on the principle of substitution, which states that a property's value is largely determined by the sales prices of comparable properties in the area. In this process, appraisers gather data on recently sold properties that are similar in size, location, and characteristics to the subject property being evaluated. They analyze the variations in these properties, such as differences in square footage, amenities, and condition, to derive a fair market value for the subject property.

This method is particularly effective in residential properties where there are numerous comparable sales available. By making adjustments for differences among the properties, the appraiser can accurately estimate the subject's value based on current market trends and actual sales data, thereby grounding the analysis in real market behavior.

The other approaches, while also relevant in the context of property valuation, focus on different aspects. Cost Analysis would entail calculating the cost to replace or reproduce the property, not primarily focusing on variations among properties. The Income Approach is centered on valuing income-generating properties based on their potential to generate future income. Market Trend Analysis assesses changes in property values over time but does not specifically focus on comparing individual property variations. Hence, the Sales Comparison Approach is clearly the right process for identifying value through analysis of property variations.