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Subdivision Valuation

Subdivision Valuation

About this course

This seminar provides an overview of subdivision valuation methodology as it relates to the valuation of improved subdivisions. You’ll learn about the methods and techniques needed to value a group of lots or units that must be marketed over a period of time. It will be of value to you if you’re attempting to provide an opinion of value for a proposed subdivision or group of existing lots or units. You’ll review comprehensive examples that explain how line-item profit and discount rate selection are handled in conjunction with discounted cash flow analysis which sets the stage for more detailed coverage of income, sales comparison, and cost approach applications in subdivision valuation.

What you’ll learn

  • Correctly employ the terminology unique to subdivision analysis.
  • Recognize the elements of a subdivision and when to apply subdivision analysis to reflect a bulk sale value.
  • Differentiate between a bulk sale for a group of lots and applying subdivision analysis to reflect vacant land value.
  • Apply subdivision valuation methodology to solve for a wide variety of valuation scenarios at different points along the time line.
  • Recognize the strengths and weaknesses of the three approaches to value as they relate to subdivision analysis.
  • Explain how the selection of line item profit influences the selection of the discount rate.

Course curriculum

  • Introduction
  • Module 1: Characteristics and Analysis of Subdivisions
  • Module 2: Timeline Concepts and USPAP Considerations
  • Module 3: Timeline Concepts and Value Reference Points
  • Module 4: Basic Valuation Concepts - Income Approach
  • Module 5: Basic Valuation Concepts - Cost Approach
  • Module 6: Applying the Income Capitalization Approach, Part 1
  • Module 7: Applying the Income Capitalization Approach, Part 2
  • Module 8: Applying the Cost Approach, Part 1
  • Module 9: Applying the Cost Approach, Part 2
  • Module 10: Applying the Sales Comparison Approach
  • Conclusion

Course Provider

Appraisal Institute (AI)
Appraisal Institute (AI)

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