Which best describes the appraisal method used in real estate?

The appraisal method most commonly used in real estate valuation is based on gauging value through market trends, known as the market approach or comparable sales approach. This approach involves analyzing recent sales of similar properties in the area to determine a fair market value.

Utilizing original costs and percentages typically refers to a different kind of valuation method, such as the cost approach, which considers the cost to replace or reproduce the property minus depreciation. While original costs can inform the appraisal process, they do not reflect current market conditions, which can lead to inaccuracies in determining a property's market value.

The estimation of property value based on future projections can represent speculative assessments, which are usually not the foundation for appraisals in real estate, as they do not rely on currently available data regarding comparable sales.

Assessing market value through peer comparison might suggest an informal evaluation and does not align with the standardized and systematic approach of appraisals, which relies heavily on established market data and rigorous analysis of recent sales to ensure an accurate valuation.

In essence, the appraisal method that accurately describes the real estate process involves understanding value based on prevailing market trends and comparable properties.