How do comparable sales influence the sales comparison approach?

Comparable sales play a crucial role in the sales comparison approach as they directly influence the valuation of a subject property by providing data on the prices that similar properties have recently sold for in the same market. This method assumes that the market value of the subject property can be inferred by looking at these comparable sales, known in appraisal terms as "comps."

By analyzing recent sales figures of similar properties, appraisers can assess the current market conditions and determine a fair market value for the property in question. This comparison not only reflects how much buyers are willing to pay for similar homes, but it also accounts for various factors that can influence value, such as location, size, condition, and amenities. The more accurate and relevant the comparable sales data is, the more reliable the resulting appraisal will be.

The other options focus on different aspects not directly related to how comparable sales influence the sales comparison approach or provide calculations that are not pertinent to determining value based on market behavior. For example, construction costs and property depreciation trends relate to property valuation from a different angle, while historical property tax information does not contribute directly to establishing current market value based on recent sales activity.