Overview:
This course demonstrates how to apply the valuation methods taught in earlier courses to small and mid-sized apartment properties. Participants learn the importance of sound market analysis and how to select the most suitable valuation approaches for each assignment, with emphasis on direct income capitalization. The course material is packed with sources of electronic and conventionally published data on rents, occupancy by market area, and investor expectations as well as pointers on appraisal reporting.
An in-depth case study focuses on a fictional appraisal with a "story" including descriptions, data, interpretation, analysis, application, and conclusions. This case provides an opportunity to see the errors of omission and commission that can, and have, occurred. Small errors often lead to bigger ones and ultimately erroneous conclusions about value. This brings together the concepts covered in this 15-hour course, with additional 1 hour exam.
Do I have to take the course exam?
You are required to complete and pass a proctored offline exam if:
- you are taking this class to meet state qualifying education requirements
- you are taking this class to meet the qualifying education requirements for an Appraisal Institute designation
You may be required to complete and pass a proctored offline exam if:
- you are taking this class to meet state continuing education requirements. Most states do not require the exam for CE credit, but please confirm this with your state licensing board.
You are not required to complete and pass a proctored offline exam if:
- if you are taking this class to meet the continuing education requirements of an Appraisal Institute designation
You will have 90 days from the time that you complete the course to take the proctored exam. Testing center locations in your area can be found by clicking on this link: www.pearsonvue.com/ai.
Syllabus:
Module 1: Overview
Module 2: Apartment Characteristics
Module 3: Market Analysis
Module 4: Valuation Methods: Income Capitalization Approach
Module 5: Valuation Methods
Module 6: Case Study
Module 7: Reporting the Apartment Appraisal
Learning Objectives:
- Identify and distinguish between different apartment classifications
- Identify the six-step market analysis process as a framework for analyzing a market standard and developing a highest and best use conclusion
- Calculate one year's potential gross income for use in direct capitalization
- Analyze an owner's operating statement and compare it with an appraiser's reconstructed operating statement
- Recognize the importance and relative weight of each valuation approach applied to an apartment property
- Identify the reporting options for apartment appraisals
- Recognize potential underwriting pitfalls related to apartment appraisal reporting
AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates
This program is approved for 1 hour of Appraisal Institute CE credit for every hour taken.
