Residential Site Valuation and Cost Approach

• Identify all steps in completing a cost approach. The step-by-step process of estimating current construction cost is the focus.
• Recognize how to 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 of estimating depreciation, including physical deterioration, functional obsolescence, and external obsolescence.
• Recognize elements of cost approach summation, including reconciliation of depreciation estimates.
• Identify residential site valuation principles and how they relate to the concept of market analysis and the development of a highest and best use conclusion.
• Identify the elements of comparison and the units of comparison as they are applied in the sales comparison approach for estimating site value.
• Recognize steps in the extraction and allocation methods of site valuation.
• Reconcile multiple site value indications to a final opinion of site value.

Program Overview:
Table of Contents and Overview
Course Schedule

Assignments:
No

Equipment:

• A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
• You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator.
• Free Review: Using a Financial Calculator: Formulas, Symbols, Math Review, and Sample Problems; and Financial Calculator Practice Exercises.
• For additional help with the HP-12C calculator, take our online seminar Using Your HP-12C Financial Calculator.
• HP-12C calculator User’s Manual.
  

Additional Information:

Course Materials Include:

• Course Handbook (413 pp.)
• Case Study Booklet (26 pp.)

You will be asked to clear the calculator’s memory before and after the examination. Only one calculator is permitted in the testing room. Examinees taking most AI exams may bring their own calculator to use during the exam. Laptops, cellular phones, tablets, iPads, wearable technology (smart watch, Apple Watch, Google Glass, etc.), and other devices that can store data or connect to the Internet are NOT permitted during the exam. In addition, all watches, wallets, bags, and purses must be removed and stored out of reach prior to taking the exam.

• Basic Appraisal Principles
• Basic Appraisal Procedures
• National Uniform Standards of Professional Appraisal Practice (USPAP) Course, 15-Hour
• Residential Market Analysis and Highest & Best Use
• Or equivalent courses

• The Appraisal of Real Estate, 15th ed.
• The Dictionary of Real Estate Appraisal, 7th ed.