What process is needed when estimating gross income to evaluate properties?

The process of stratifying properties by class is essential when estimating gross income for evaluating properties because it allows for a more accurate and relevant comparison among similar types of properties. By categorizing properties into specific classes—such as residential, commercial, or industrial—appraisers can evaluate performance metrics, market trends, and income potential more effectively.

Stratification helps in identifying the distinct income-generating capabilities of different property types and avoids the skewed results that might arise if highly variable property types were compared directly. Each class may have unique attributes that influence gross income, such as different market demands, rent levels, and operating expenses. Therefore, this method provides a structured approach to data analysis, leading to more accurate estimates of gross income and informed decisions in property evaluations.