This course provides in-depth instruction in the sales comparison and cost approaches. Participants explore ways to identify and measure elements of comparison as well as methods to select and support adjustments including graphing, pairing, sorting, regression analysis, and qualitative analysis. After reviewing the standard methods of calculation, the course explores special applications and common errors in using or misapplications of the approaches. All components of the cost approach are explored thoroughly, with particular attention paid to feasibility and current cost, including supporting entrepreneurial incentive and calculating lease-up costs. In addition, participants study advanced data confirmation techniques, learn how to make all three approaches consistent in the reconciliation process, and discover traps to avoid.

This course may be used to fulfill the 30-hour Elective topic requirement toward certification in states where approved for QE credit. NOTE: This course is not a substitute for the prerequisite General Appraiser Sales Comparison Approach or General Appraiser Site Valuation & Cost Approach courses.

Note: Required MAI Designation Course

Content

• Sales comparison approach
  • Elements of comparison
  • Adjustments
  • Land valuation
• Cost approach
  • Current cost
  • Depreciation

At the end of the course, you will be able to:

• Recognize how the cost approach applies to everyday situations and when it is most applicable
• Explore categories of depreciation—extraction, breakdown and specialized applications such as nonconforming uses and troubled markets
• Extract depreciation from the market and apply it to real-world problems
• Develop more effective sales verification techniques to confirm data
• Support feasibility conclusions using current cost

• The Appraisal of Real Estate, 13th ed.
• Uniform Standards of Professional Appraisal Practice (USPAP), current ed.
• Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, current ed.