Residential Site Valuation and Cost Approach

Credit hours: 15 Tuition: $279.00

Upcoming Dates

This 2-day course is your opportunity to review the principles and applications of the cost approach and its relationship to residential site valuation.

The cost approach involves three basic steps:  1. estimating the cost of replacing the subject property’s existing improvements; 2. estimating and deducting depreciation; and 3. adding the estimated value of the site to the depreciated value of the improvements.

Through examples, discussion and case study this course explores each of the steps in detail with extra emphasis on site valuation.

The Cost Approach to Value

This course includes step-by-step applications of the cost approach. It begins with a detailed inspection of the property. You’ll learn how to inspect the improvements and analyze the condition. You’ll learn how to inspect the site and perform a market analysis. And you’ll learn exactly how to measure the improvements and compute area.

Alternative techniques to estimate current construction costs, including data sources and the comparative-unit method, will be covered in detail. Since estimating accrued depreciation in the cost approach is an on-going challenge, we’ll show you how to apply market extraction, the age-life method and the breakdown method. Through case studies and examples you’ll practice estimating physical deterioration, functional obsolescence and economic obsolescence. You’ll also learn how to reconcile the estimates of depreciation.

Site Valuation

The principles covered in Residential Market Analysis and Highest and Best Use will be applied to show you how to perform a market analysis and arrive at a highest and best use conclusion. You’ll also look at alternative residential site valuation principles. The primary focus is the application of the sales comparison approach to estimate residential site value. You’ll learn the most common elements and units of comparison. You’ll also learn how to apply allocation and market extraction techniques. Finally, you’ll learn how to reconcile all of this information to arrive at your reconciled opinion of site value.

Topics include:

• Residential applications of the cost approach
• Alternative methods to estimate building costs
• How to find and apply cost data
• Physical, functional and external depreciation
• How to measure depreciation
• How to perform market extraction
• How to apply the breakdown method of depreciation
• The principles of site valuation
• How to identify site characteristics
• How to analyze the market and determine highest and best use
• Case studies and examples
• Federally mandated one hour final exam must be passed for course credit

Residential Site Valuation and Cost Approach

8:30am - 5:00pm	2 Days	End Date: 10/8/2013
Bloomington - BLN Office Park, Bloomington	15 Credits	Program No. P3215
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Schedules updated: 5/20/2013 at 6:10 PM