What method of land valuation compares the appraised property to recently sold comparable vacant parcels?

The method of land valuation that compares the appraised property to recently sold comparable vacant parcels is known as the Direct Sales Comparison approach. This method focuses on analyzing the sale prices of similar properties in the market to determine the value of the property being appraised. By examining characteristics such as location, size, and amenities of recently sold properties that are comparable to the subject property, an appraiser can establish a more accurate market value.

The strength of this approach lies in its reliance on actual sale data, which reflects current market conditions and buyer behavior. It is particularly effective in active real estate markets where there are sufficient comparable sales to draw from, enabling a more streamlined and transparent valuation process.

In contrast, the Cost Approach estimates value based on the cost to replace or reproduce the property, while the Income Approach focuses on the potential revenue-generating ability of a property. The Extraction Method, on the other hand, derives value by calculating what the land's value would be based on improvements made to it, often used in specific contexts such as subdivision development. These methods do not primarily rely on direct market comparisons of vacant land sales, distinguishing the Direct Sales Comparison as the appropriate choice for this scenario.