Certified for 7 hours of continuing education in AL, AR, AZ, CA, CO, GA, KY, MD, MS, NV, OH, OK, OR, SC, TN, TX, and VA. *Pending approval in AL, HI, NC* More state approvals coming soon!
This course teaches the student how to use depreciated replacement cost to develop and support adjustments in the sales comparison grid of a residential appraisal assignment. Source documents are examined and applied in real world examples to demonstrate how depreciated cost fits with other quantitative methods of developing and supporting sales grid adjustments.
All quantitative methods are limited by the available sales comparison data. Each appraisal assignment will have different quantities (sample size) and qualities (sample fit) of comparable data. The importance of matching quantitative methods to available data will be examined. Critical thinking skills are taught to increase competence in the matching of data to quantitative methods.
Quantitative methods, such as depreciated replacement cost, are calculation intensive. The course teaches the use of a spreadsheet application (Excel) that applies to quantitative methods. Other spreadsheet applications can be used as well. Also demonstrated is a commercial, web-based application designed to simplify depreciated cost calculations. Neither are required to understand or apply depreciated replacement cost, which will be demonstrated in the course.
Know the USPAP requirement that the appraiser must be aware of, understand and correctly employ recognized methods and techniques that are necessary to produce a credible appraisal
Identify and review recognized methods
Understand the relationship between sample metrics and credibility
Learn how to match recognized methods with available data
Learn critical thinking skills by identifying fallacies of logic
Review the variables used in the Cost Approach
See how the Cost Approach can be used to calculate depreciation
Understand contributory value
Master age-life depreciation
Review the logic of the Uniform Residential Appraisal Report
Understand the relationships between Total Cost, Average Cost and Marginal Cost
Apply the principal of Marginal Cost to the logic of Paired Data
Review automation tools that streamline calculations
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Scott Cullen is a boots-on-the-ground appraiser from Minneapolis / St Paul where he has been a Certified Residential since 2001. He is cofounder and the appraiser half of a partnership in Solomon, a suite of cloud based calculators that use cost data to help appraisers extract depreciation from the market and develop market based adjustments for the sales grid. Beyond grid adjustments, Solomon supports other assignment results for appraisers like effective age, remaining economic life and site value. Scott graduated from the University of Minnesota with a Bachelor of Science degree in Business Administration and stays busy as a fee appraiser, supporting the Solomon user base and developing CE classes on the Cost Approach.