What method of appraising is used to estimate the value of a single family home or vacant land?

The market approach to appraising is the method typically used to estimate the value of a single-family home or vacant land. This approach relies on comparing the property in question to similar properties that have recently sold in the same area. By analyzing the sale prices of comparable homes, appraisers can determine a fair market value for the subject property. This method is particularly effective in residential real estate, where market dynamics can vary significantly from one neighborhood to another.

The market approach also takes into consideration current market trends, buyer preferences, and the overall economic environment, making it a relevant and reliable tool for appraisals in the real estate sector. By focusing on recent transactions and similar properties, this method allows potential buyers and sellers to make informed decisions based on actual market data.