In the direct sales comparison approach to land valuation, what must sales be initially grouped into?

In the direct sales comparison approach to land valuation, it is essential to initially group sales into homogeneous groups. This grouping is based on the characteristics that make the properties similar, such as location, size, zoning, and land use. By categorizing sales into homogeneous groups, appraisers can ensure that the comparisons made are valid and relevant, leading to more accurate valuation outcomes.

For example, if multiple parcels of land are being analyzed for their market value, it is crucial to compare similar types of properties rather than mixing dissimilar ones. This approach helps mitigate the impact of external factors that might skew the value comparison, such as discrepancies in development potential or market demand.

The other options, while they could involve grouping in some context, do not directly pertain to the fundamental requirements of the direct sales comparison approach as explicitly as homogeneous groups do. It is the specific nature of homogeneity in characteristics that allows for effective and accurate valuation.