Residential Sales Comparison and Income Approaches

About this course

Through two in-depth case studies, this introductory course provides you with the techniques necessary for completing the sales comparison and income capitalization approaches of the valuation process. You will develop and apply qualitative and quantitative analysis techniques as well as organize and reconcile data.

What you’ll learn

Recognize the relationship between the sales comparison and income capitalization approaches and the rest of the valuation process.
Extract and support adjustments using paired data analysis.
Extract and support adjustments using income analysis.
Extract and support adjustments using cost and depreciation analysis.
Apply the adjustment techniques most appropriate for given data.
Calculate appreciation rates for the subject property and comparable sales.
Use the estimated gross monthly market rent and the reconciled GRM to derive a value indication from the income capitalization approach.
Apply the reconciled GRM to the gross monthly rent estimate to derive a value indication for the subject property by the income capitalization approach.
Derive an indication of value by the sales comparison approach.

Course curriculum

Introduction
Module 1: Review of the Valuation Process
Module 2: Principles That Affect the Sales and Income Capitalization Approaches
Module 3: Comparability Tools
Module 4: Elements of Comparison
Module 5: The Adjustment Procedure
Module 6: Supporting Quantitative Adjustments
Module 7: Case Study 1 - Sales Comparison Valuation of a Single-Unit Property
Module 8: Qualitative Analysis
Module 9: Financial Analysis
Module 10: Other Market Evidence Analysis Techniques
Module 11: Income Capitalization Approach
Module 12: Case Study 2 - Sales Comparison and Income Capitalization Valuation of a Two-Unit Property
Module 13: Reconciliation
Module 14: Selection of Comparables
Module 15: Partial Interests
Module 16: Data Collection and Verification
Conclusion