Course Description and Outline

CPD 130: Residential Appraisal Basics

Pre-requisite: None.

This course introduces the principles and approaches of real estate valuation for the non-appraiser, with an emphasis in residential properties. The intended audience for this course are those involved in processing or reviewing residential real estate appraisal reports as part of their job as a broker, mortgage lender, lawyer, accountant, or other professional. The course describes the appraisal process from receipt of a contract or terms of reference for a valuation through to submitting the appraisal report.

The three traditional approaches will be explained in detail, as they pertain to residential properties, with an emphasis on the direct comparison and cost approaches. This three-lesson course does not intend to train one to become a professional appraiser, but it contains sufficient information to provide an introduction to real estate valuation such that individuals learn the basics of appraisal, as well as how to evaluate appraisal reports in terms of their reliability as a decision-making aid. Please note: this course is not eligible for AIC CPD credit (but is eligible for 9 PDP credits for BCREA members).

Course Outline

FOREWORD: Introduction to Professional Development Courses

LESSON 1: Fundamentals of Residential Appraisal

  • Instructor's Comments
  • WIntroduction to Appraisal
  • Overview of the Appraisal Process
  • Step 1: Definition of the Problem
  • Step 2: Scope of Work
  • Step 3: Data Collection and Property Description
  • Step 4: Data Analysis
  • Steps 5-7: Appraisal Approaches, Reconciliation, and Communicating Findings
  • Summary
  • Review and Discussion Questions

LESSON 2: Valuation Approaches for Residential Properties

  • Instructor's Comments
  • Step 5: Application of the Approaches to Value
  • Direct Comparison Approach
  • Researching the Data on Real Estate Transactions
  • Cost Approach
  • Steps in the Cost Approach
  • Income Approach
  • Step 6: Reconciliation of Value Indications and Final Estimate of Value
  • Step 7: Communicate Findings
  • Summary
  • Review and Discussion Questions
  • Appendices

LESSON 3: Evaluating Residential Appraisal Reports

  • Instructor's Comments
  • Legal Considerations for Appraisers
  • Appraisal Review for the Non-Appraiser
  • Helpful Hints for Appraisal Review
  • Residential Appraisal Review Case Studies
  • Review and Discussion Questions

AFTERWORD

  • The Final Examination

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