What is the main purpose of stratifying sales in the direct sales comparison approach?

Stratifying sales in the direct sales comparison approach primarily serves the purpose of enhancing accuracy in the appraisal process. By organizing and categorizing sales data into distinct strata based on specific characteristics—such as property type, location, size, or vintage—appraisers can obtain a more precise understanding of the market trends and variations that affect property values. This method allows for a more meaningful comparison between similar properties, facilitating a more reliable outcome in determining the value of the subject property.

When appraisers analyze sales that are more homogenous within each stratum, it reduces the influence of outlier sales or extreme market fluctuations, leading to a more accurate reflection of value for the property in question. As a result, this attention to detail in the stratification process ultimately strengthens the credibility of the appraisal by ensuring that the comparisons made are not skewed by irrelevant or disparate data points.