What does the term 'stratification' in mass appraisal primarily refer to?

Stratification in mass appraisal is a process used to enhance the accuracy and efficiency of property assessment by dividing properties into sub-groups based on specific characteristics, such as property type, location, size, or other relevant criteria. This segmentation allows appraisers to analyze groups of similar properties rather than treating all properties as a homogeneous group. By categorizing properties, appraisers can more accurately reflect market influences and variations in value that exist within different segments of the real estate market.

For instance, different neighborhoods may have varying demand levels, which affects property values. By stratifying the data, appraisers can better analyze these differences and apply appropriate valuation methods tailored to each sub-group. This method not only improves the assessment process but also aids in ensuring equity among property owners by providing more precise valuations relative to their property's specific characteristics and market context.