Which approach is commonly used to determine the value of owner-occupied properties in established neighborhoods?

The Sales Comparison Approach is frequently utilized to determine the value of owner-occupied properties in established neighborhoods due to its direct correlation with market activity. This method assesses a property's value by comparing it with similar properties that have recently sold in the same area, known as "comparables."

In established neighborhoods, there is typically a sufficient volume of sales data available for similar homes, allowing for accurate comparisons. This approach takes into account various factors such as location, size, condition, and amenities, which are all critical in reflecting the true market value of a property.

Using the Sales Comparison Approach helps ensure that the valuation is grounded in the realities of what buyers are willing to pay for similar properties, making it the favored method in residential real estate transactions. The focus on actual market sales data provides a reliable assessment that is closely aligned with buyer behavior in those neighborhoods.