What type of appraisals focuses specifically on determining the market value of a property?

The market approach is the type of appraisal that focuses specifically on determining the market value of a property. This method assesses the value of a property based on the sale prices of similar properties in the same area that have recently sold, also known as comparables. By analyzing the sales data of these comparable properties, appraisers can estimate the likely market value of the subject property.

This approach is particularly effective in active markets where there is ample data on similar properties, allowing for adjustments based on differences in features, conditions, sizes, and locations. The market approach reflects the principle of supply and demand, as it considers the actual transactions that have occurred in the marketplace.

The other types of appraisal methods focus on different aspects. The income approach evaluates a property based on its potential to generate income, often used for investment properties. The cost approach estimates value based on the cost to replace the property minus depreciation, making it useful for new constructions or unique properties. The comparative approach is generally not a standard appraisal method; it may refer to the process of comparing property values but doesn't specifically encapsulate a formal appraisal strategy like the market approach does.