What is the method used for determining the value of a property based on the sales of similar properties?

The method used for determining the value of a property based on the sales of similar properties is known as Comparative Market Analysis (CMA). This approach involves analyzing the sale prices of recently sold properties in the same area that have similar characteristics to the property in question.

CMA is essential for real estate professionals, as it helps to establish a competitive listing price for sellers and provides buyers with an informed understanding of property values in the market. It considers various factors such as the size, age, condition, and location of comparable properties, allowing for a detailed evaluation of market trends and property worth.

In contrast, transaction comparison, while superficially similar, may not be specific enough as it does not imply a thorough analysis or adjustment process that is a hallmark of a proper CMA. Market valuation generally encompasses a broader concept that can include various methods beyond just the comparative approach. Property appraisal refers to a more formal evaluation conducted by a licensed appraiser, which may or may not utilize the comparative technique as part of the overall appraisal process.

Therefore, the specific focus and methodology inherent in a Comparative Market Analysis make it the most accurate answer for this question regarding determining property value based on the sales of similar properties.