The sales comparison approach is a method used in real estate appraisal to determine the value of a property. It involves comparing the subject property to similar properties, known as comparables or comps, that have recently sold in the same area. By analyzing the sale prices of these comparable properties, appraisers can estimate a fair market value for the property in question. This approach relies on the principle of substitution, which states that a buyer will not pay more for a property than the cost of acquiring a similar one. Adjustments are made for differences in features, location, and condition to ensure an accurate comparison.