Basic Appraisal Procedures

About this course

Apply the principles and concepts learned in Basic Appraisal Principles. This course takes you step-by-step through the valuation process: defining the problem, collecting and analyzing data, reaching a final opinion of value, and communicating the appraisal. Learn about the three approaches to reaching an opinion of value—income capitalization, cost, and sales comparison—and apply them in true-to-life case studies and problems. After examining income capitalization methods and formulas, learn how rates and multipliers are derived. Through case studies, discover the steps and concepts involved in the cost approach—how appraisers estimate the cost of constructing a reproduction of or replacement for an existing structure; the three major components of depreciation and methods for estimating and allocating depreciation; and land and site valuation. The course will guide you through the sales comparison approach including researching the market, verifying information, selecting units of comparison, conducting a comparative analysis, making adjustments, and reconciliation. Complete key sections of an appraisal report. Finally, the course provides an introduction to property description and construction and design basics.

What you’ll learn

Identify the eight steps of the valuation process.
Identify the basic components and processes used to derive a value indication when performing the income capitalization approach.
Identify the six procedures for analyzing land or site value.
Identify the three cost-estimating methods used by appraisers.
Apply component costs to estimate the cost of residential building improvements.
Identify typical elements of comparison used in the sales comparison approach.
Analyze sales to select appropriate comparable properties.
Derive adjustments using paired sales analysis.
Reconcile the indicated values derived in the sales comparison approach to a single point value opinion.
Recognize the types of reports used to communicate an appraisal analysis.

Course curriculum

Introduction
Module 1: The Valuation Process
Module 2: From Analysis to Solutions
Module 3: Introduction to Income Capitalization
Module 4: Income Capitalization Formulas
Module 5: Income and Expense Analysis
Module 6: Application - Problem Solving
Module 7: Construction and Design Basics
Module 8: Introduction to the Cost Approach
Module 9: Components in Cost Analysis
Module 10: Cost Analysis - Case Study
Module 11: Commercial Costs and Depreciation Basics
Module 12: Applied Depreciation
Module 13: Land or Site Valuation
Module 14: Property Description
Module 15: Sales Comparison Approach
Module 16: Comparable Property Selection
Module 17: Adjustments
Module 18: Oak Street Case Study - Market Grid Application
Module 19: Oak Street Case Study - Sales Comparison (Market Grid Application, cont.)
Module 20: Reconciliation and Communication
Conclusion