Maricopa Community Colleges  REA284   19956-99999 
Official Course Description: MCCCD Approval: 06/27/95
REA284 19956-99999 LEC 3 Credit(s) 3 Period(s)
Real Estate Appraisal
Includes valuation, market analysis, classification of date and cost factors by emphasizing single family residential properties and income-producing real estate. Prerequisites: REA179 or permission of instructor.
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MCCCD Official Course Competencies:
 
REA284   19956-99999 Real Estate Appraisal
1. Identify the requirements to be licensed to appraise real property, the regulation under FIRREA, appraisal foundation and Arizona Board of Appraisal. (I)
2. Explain the forms of ownership, how title is conveyed, and the legal rights and interest in real estate affecting appraisals. (II)
3. Describe the market characteristics of real property and methods of financing. (III)
4. List and describe the economic principles of value. (IV)
5. Contrast the three approaches to values. (V)
6. Identify the methods of legal description of land. (VI)
7. Describe what objectives, conditions and data sources are necessary to perform an appraisal. (VII)
8. List the residential construction details that are considered in estimating the value of a house. (VIII)
9. Describe the steps in the comparison approach to value. (IX)
10. Give examples of a comparison of sales analysis. (X)
11. Describe how the site value and depreciated replacement/reproduction cost are determined using the cost approach to value. (XI)
12. The financial data used to determine the net operating income and the capitalization formula for the income approach to value. (XII)
13. Give examples of the reconciliation of the three approaches to value. (XIII)
14. Explain how estimates of value can be given for a partial interest. (XIV)
15. Identify and explain the three types of appraisal reports. (XV)
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MCCCD Official Course Outline:
 
REA284   19956-99999 Real Estate Appraisal
    I. The Appraisal Profession
        A. Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)
        B. The Appraisal Foundation
        C. Arizona Appraisal Licensing
      II. Real Estate and its Appraisal
          A. Legal rights and interests
          B. Forms of ownership
          C. Transfer of title
        III. The Real Estate Marketplace
            A. Market characteristics
            B. Cost and methods of financing
            C. Market value or value in exchange
          IV. Economic Principles of Value
              A. Time value
              B. Place value
            V. The Appraisal Process
                A. Approaches to value
                B. Relationship of the approaches
              VI. Legal Descriptions of Land
                  A. Meters and bounds
                  B. Recorded plat map
                  C. Government survey
                VII. Appraisal Process
                    A. Appraisal objectives
                      1. Purpose
                      2. Interest to be appraised
                      3. Date of value estimate
                      4. Limiting conditions
                    B. Data banks
                      1. Source list
                      2. Kinds of data needed
                    C. Data forms
                  VIII. Residential Construction
                      A. Plans, specifications, and permits
                      B. Styles of houses
                      C. Orientation
                      D. Interior design
                      E. Construction details
                    IX. Comparison Approach Steps
                        A. State the problems
                        B. List data needed and sources
                        C. Gather, record, and verify data
                        D. Determine highest and best use
                        E. Estimate land value
                      X. Comparable Sales Analysis
                          A. Data analysis
                          B. Adjustments
                          C. Net adjustment
                          D. Value estimate
                        XI. Cost Approach Value
                            A. Site valuation
                            B. Reproduction/replacement costs
                            C. Depreciation
                            D. Value estimate
                          XII. Income Capitalization Approach Value
                              A. Potential gross income
                              B. Vacancy and credit losses
                              C. Effecting gross income
                              D. Operating expenses
                              E. Net operating income
                              F. Determining capitalization rate
                              G. Capitalization techniques
                              H. Value estimates
                            XIII. Reconciliation of Values
                                A. The three approaches to value
                                B. Weighing the values of each approach
                                C. Final estimate of value
                              XIV. Appraising Partial Interest
                                  A. Types of partial interest
                                  B. Leasehold interest
                                XV. Appraisal Reports
                                    A. Letter of opinion
                                    B. Form report
                                    C. Narrative report
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