What is the most common method of stratification used in mass appraisal modeling?

The most common method of stratification used in mass appraisal modeling is geographic stratification. This approach entails dividing properties into groups based on their geographic locations, such as neighborhoods, municipalities, or regions. Geographic stratification is essential because it allows appraisers to account for the variances in property values that arise from differences in location. Factors like local economic conditions, zoning regulations, and neighborhood characteristics can significantly influence property values, making geographic stratification a practical method for ensuring that these variations are accurately reflected in appraisals.

When appraisal models are built using geographic stratification, they can more effectively capture and represent the influences of location on property valuation. This enhances the overall accuracy of mass appraisals and ensures that assessments are fair and equitable for property owners. Using geographic components helps create more reliable models that are sensitive to the unique characteristics and market dynamics of different locales.

Other methods of stratification, such as property type or demographic stratification, while useful in certain contexts, do not provide the same level of insight into value variations caused by geographical factors, which can make geographic stratification the preferred choice for mass appraisal modeling.