Maricopa Community Colleges  REA286   19956-99999 
Official Course Description: MCCCD Approval: 06/27/95
REA286 19956-99999 LEC 3 Credit(s) 3 Period(s)
Advanced Real Estate Appraisal
Includes appraisal procedures toward development of multiunit and commercial income properties. Prerequisites: REA284 or permission of instructor.
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MCCCD Official Course Competencies:
 
REA286   19956-99999 Advanced Real Estate Appraisal
1. Give examples of a site and improvement analysis. (I)
2. Explain the income approach to value. (II)
3. List and describe the time value of money calculations. (III)
4. Prepare an annual property operating data analysis and a five- year cash flow projection report. (IV)
5. Identify and compare the investment rates of return. (V)
6. Give examples of financial leverage and the impact on rates of return. (VI)
7. Prepare an estimated value of a leasehold estate. (VII)
8. Prepare an estimate of value using the cost approach. (VIII)
9. Prepare an estimate of value using the direct sales comparison approach. (IX)
10. Prepare a reconciliation of final value estimate. (X)
11. Describe the requirements of an appraisal report. (XI)
12. Identify and explain the ten Uniform Standards of Professional Appraisal Practice. (XII)
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MCCCD Official Course Outline:
 
REA286   19956-99999 Advanced Real Estate Appraisal
    I. Site and Improvements Analysis
        A. Site description
        B. Government and legal restriction
        C. Economic Issues
        D. Site analysis and demographics
      II. Use of Income Approach
          A. Types of income
          B. Capitalization methods
          C. Value Component appraisal
          D. Market value, investment value, and value in use
          E. Application of income approach
        III. Time Values of Money
            A. Variables in discounting process
            B. Compound interest factors
            C. Discounting factors
            D. Mortgage capitalization rate
          IV. Cash-Flow Forecasting
              A. Annual property operating data analysis
              B. Forecasting future incomes
              C. Forecasting future expenses
              D. Forecasting proceeds of disposition
              E. Forecasting before and after tax cash flow
            V. Investment Return Analysis
                A. Return on investment
                B. Return on equity
                C. Discounted present value
                D. Net present value
                E. Interest rate of return
                F. Fair market rate
              VI. Investment Measures with Mortgage Financing
                  A. Financial leverage
                  B. Impact of financing on return rates
                VII. Leased Fee Valuation
                    A. Net operating income forecasting
                    B. Resale proceeds forecast
                    C. Lease fee discount yield
                    D. Lease fee cash flow forecast
                    E. Market rent equivalency adjustment
                  VIII. Cost Approach Valuation
                      A. Site valuation
                      B. Excess land
                      C. Replacement cost
                      D. Depreciation
                    IX. Direct Sales Comparison Valuation
                        A. Sources of data
                        B. Elements of comparison
                        C. Adjustment process
                      X. Reconciliation
                          A. Relationship of approaches to type of property
                          B. Assigning weights to approach values
                          C. Final estimate of value
                        XI. Appraisal Report
                            A. Letters of opinion
                            B. Form reports
                            C. Narrative report
                          XII. Uniform Standards of Professional Appraisal Practice
                              A. Standards and standard rules
                              B. Statements on appraisal reporting
                              C. Advisory opinions
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