Final answer:
The sales comparison approach is most important for estimating the value of an existing residence because it compares similar recently sold properties in the area, with adjustments made for differences.
Step-by-step explanation:
The sales comparison approach to value is most important when estimating the value of an existing residence. This approach involves comparing the subject property to similar properties that have recently sold in the same area. Adjustments are made for differences in location, size, and features to estimate the property's market value. For instance, a three-bedroom home in a suburban neighborhood would be compared to other similar three-bedroom homes in that neighborhood that have sold within a reasonable time frame.
While this approach can potentially be applied to various types of properties, it is particularly pertinent to existing residences because there tend to be many comparable sales that can be used as benchmarks. In contrast, apartment buildings, retail locations, and new residences may have fewer direct comparables and can often require additional appraisal methods, such as the income approach for apartment buildings or cost approach for new constructions.