Pre-requisite: There are no formal prerequisites for this course, but it is assumed that students are familiar with appraisal concepts, including the three approaches to value, direct comparison, cost, and income, and the application of these methods. Students who require a refresher on appraisal fundamentals may wish to review the CPD 130 course "Residential Appraisal Basics".
This course explores the relationship between time and value in real estate. Any estimated value for a property must be accompanied by an estimate of how long it would need to be on the market in order to sell at that price. Without establishing this link to sale timing, a value conclusion cannot be fully understood.
The Appraisal Institute of Canada's Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) requires that all market value conclusions must be accompanied by an estimated reasonable exposure time. The standard definition of market value requires reasonable and adequate market exposure. Similarly, sales that lack adequate marketing or time-on-the-market may not achieve full value. A situation that requires shorter-than-typical sales timeframes, such as a forced sale due to foreclosure or a relocation, may require something other than a market value analysis.
The course examines what is involved in justifying and supporting opinions of exposure time, as well as the associated, but distinct, concept of marketing time. The examples and case studies illustrate how these concepts apply in practice, both for market value appraisals and valuation situations where time is unreasonably limited. After reading the course materials, students should have a good understanding of the requirements and processes for estimating time associated with value estimates.
FOREWORD: Introduction To Professional Development Courses
LESSON 1: Time is Money: Market Exposure and Property Value
After completing this lesson, the student should be able to:
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