The value of a property may be estimated using which approach among the following?

The value of a property can indeed be estimated using several methodologies, and specifically, the sales comparison approach is one of the most widely utilized methods for determining property value. This approach involves comparing the subject property to similar properties that have recently sold in the same area. Adjustments are made for any differences between the subject property and the comparables, allowing a market-based valuation that reflects how much buyers are currently willing to pay for similar properties in that market.

While the cost approach and income approach are valid methods as well, they are utilized under different circumstances. The cost approach is typically used for new constructions or unique properties where comparable sales data is scarce, focusing on the replacement cost minus depreciation. The income approach is most relevant for investment properties, where the focus is on the potential income generated rather than outright sales comparisons.

Because the question only inquires about an approach among the options given and considers the sales comparison as viable and common, recognizing its direct alignment with established market transactions provides clarity for property valuation. Hence, while the other approaches are legitimate, they don’t negate the validity and importance of the sales comparison approach, which stands out for its applicability in many real estate transactions.