General Appraiser Site Valuation and Cost Approach
This is a practical, hands-on course that concerns two basic aspects of real estate appraisal: land/site valuation and the development of the cost approach. Extensive use of problems and case studies will give you practice in applying site valuation and cost approach methods learned in previous courses. Special attention is given to the appraisal of various types of sites and the various means of measuring depreciation. Two in-depth case studies are presented. The first case study addresses the valuation of an industrial property and demonstrates the fundamentals of site valuation, estimation of current improvement cost, and various methods of recognizing and measuring depreciation. The second case study is a short one, featuring valuation of a residential subject site using the sales comparison approach, extraction, interview techniques, and information provided by professional cost data sources.
Develop a complete cost approach. The step-by-step process of estimating current construction cost is the focus. Identify and use data sources and the comparative-unit method of cost calculation. Apply the age-life and market extraction methods of estimating depreciation. Apply the breakdown method for estimating depreciation, including physical deterioration, functional obsolescence, and external obsolescence. Recognize elements of cost approach summation, including reconciliation of depreciation estimates. Identify basic site valuation principles and how they relate to the concept of market analysis and the development of a highest and best use conclusion.
