Which approach to valuation relies heavily on the adjustments made between comparable properties and the subject property?

The sales comparison approach is the correct choice because it specifically focuses on evaluating a property based on the sale prices of similar properties, known as comparables or "comps." This approach requires appraisers to make adjustments for differences between the subject property and the comparable properties to arrive at a more accurate valuation.

The process involves identifying properties that are similar in size, location, condition, and features. Once these properties are selected, adjustments are made to account for any variations between the subject property and the comparables. For example, if a comparable property has a larger garage or a finished basement that the subject property does not have, an adjustment might be made to decrease the value of the comparable property to reflect the difference.

This method is highly relied upon in residential real estate valuations because it directly reflects what buyers have been willing to pay for similar properties in the market. The reliance on market data makes it a practical and widely used approach in determining property values.

In contrast, the cost approach relies on estimating the cost to replace or reproduce the subject property, which may not reflect current market conditions or buyer behavior. The income approach is used primarily for income-producing properties and focuses on the revenue generation potential, while the market analysis approach is broader and involves looking at overall market