In order to own and convey property in a market economy it is necessary for that property to be assigned a specific monetary value. This process, unlike, say, that of assigning value to durable goods which have specific materials, production and marketing costs can be somewhat more involved. With property, the fixed costs building materials and labor costs are always accompanied by more esoteric factors that go to make property more (or less) valuable. Becoming a member of the group that understands and applies these factors is a bit more complex than simply being able to understand a balance sheet.

This course covers the theories, rules, duties and activities that guide the real estate appraisal process. An appraiser must also conduct him or herself professionally, ethically and honestly. There are guidelines regarding professionally and ethically correct behavior of appraisers as well which are also covered by this course. The entire appraisal process should be carried out in the best possible way for consumers and licensees as well as the real estate market.

Learning Objectives

Upon completion of this module, the student will be able to:

• Understand the basics of and common terms relating to real estate value estimation and appraisal.
• List the traits that a qualified appraiser must possess.
• Identify the value principles applied in the appraisal of property.
• Employ the value theories in the appraisal process to calculate the price at which property should be traded.
• Identify the characteristics that a real estate market should have to promote trade of property.
• Discuss the three value approached in detail.
• Pursue the eight steps of real estate appraisal to reach a purchase price for a property.
• Understand an appraisal report.
• Know the difference between an appraisal certificate and license.

Approved Course Number:

03-00-100-7480