Cannot complete a factory reset of my late 2010 MacBook Air

I'm trying to perform a factory reset of my late 2010 MacBook Air. Here are the steps I have followed so far:

1. Restart your Mac. Once it restarts and the grey screen appears, press and hold the Command and R keys.
2. Select Disk Utility and click Continue.
3. Select your startup disk on the left and click the Erase tab.
4. Choose Mac OS Extended (Journaled) from the Format menu, enter a name, and then click Erase.
5. Select Reinstall OS X, click Continue, and then follow the instructions on your screen.

When I click to Reinstall OS X, it gives me an option to install macOS Sierra. When I try to install on my formatted disk "Macintosh HD", it fails to complete and says "An error occurred while preparing the installation. Try running this application again." I've tried running it multiple times and still encounter this error every time.

Can anyone please advise on what I should do next? Thank you!