Which assessment method is primarily influenced by recent sales data?

The Sales Comparison Approach is primarily influenced by recent sales data as it focuses on comparing the subject property to similar properties that have recently sold in the same area. This method relies heavily on the principle of substitution, which asserts that a buyer will not pay more for a property than it would cost to purchase an equally desirable property under similar conditions.

In this approach, assessors gather data on comparable sales (often referred to as "comps") to derive an estimated value for the subject property. This includes adjustments for differences in features, locations, conditions, and other pertinent factors to establish a fair market value based on what buyers have recently paid for similar properties. Consequently, current market trends and sales activity heavily inform this assessment method, making it a practical and effective approach, especially in active markets.

Other methods, like the Cost Approach, focus on the cost to replace or reproduce a property, while the Income Approach centers on the income-generating potential of the property rather than comparable sales data. The Market Analysis Approach, although related to sales data, is broader and may include additional economic factors and trends that aren't strictly focused on recent transactions. Thus, the Sales Comparison Approach stands out as the method most directly tied to actual market activity and recent sales data.