Which term best describes the act of comparing market prices of similar properties in real estate appraisal?

The term that best describes the act of comparing market prices of similar properties in real estate appraisal is the sales comparison approach. This method involves analyzing similar properties, known as comparables or "comps," that have recently sold in the same area to determine the value of a subject property. The sales comparison approach is particularly effective in residential real estate, where properties tend to be somewhat homogeneous, allowing for direct comparisons based on factors such as location, size, condition, and features.

When appraisers use the sales comparison approach, they identify properties that are similar to the one being appraised and adjust their sale prices based on differences that may affect value. This process allows for a more accurate estimation of a property's market value by reflecting current market conditions and buyer preferences.

The other terms provided relate to real estate valuation and appraisal but do not specifically capture the act of comparing market prices of similar properties as effectively as the sales comparison approach does. Comparative market analysis is used for different purposes, often by real estate agents to help clients set prices or evaluate offers, while property assessment typically refers to determining property taxes rather than market value. Market valuation is a broader term that can encompass various methods, not exclusively focused on sales comparisons.