Depreciated Replacement Cost

Learn the fundamentals of this valuation technique

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7 HOURS

$139.95

Certified for 7 hours of continuing education in AL, AR, AZ, CA, CO, GA, FL, HI, IL, KY, LA, MA, MD, MI, MS, MO, NV, NC, NJ, OH, OK, OR, SC, TN, TX, UT, VA and WA.  More state approvals coming soon!

AL Approval #: C02490
AZ Approval #: D0816-1486
AR ALCB Approval #: AE008
CA Approval #: 1910501017
CO Approval #: 2945
GA Approval #: 71152
FL Approval #: 10194 (License #3362)
HI Approval #: 23-442
IL Approval #: 575.010718
Approved by the KY REAB
Approved by the LA REAB
MA Approval #: 1360003
Approved by MD BREA
MI Approval #: 3463
Approved by MO REAC
MS Approval #: 50177
NC Approval #: 4342
NV Approval #: CE.0009583-A
NJ Approval #: 2022-217
OH Approval #: 948300512A 23
OK Approval #: 906
OR Approval #: APEL-C-0725-0106
SC Approval #: DE1837
TN Approval #: 2329
TX Approval #: 37964
UT Approval #: AC240302
Approved by VA REAB
WA Approval #: A20105917

Course Description

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.

Course Objectives

  • 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

Course Reviews

See what students are saying

“Awesome course. Highest quality. It’s rare in online classes I have taken that a method is demonstrated from start to finish.”

“Excellent!  I wish I’d taken this course 18 years ago. I’m a big fan of Excel, and I use it in every appraisal I write – but, this course has taken its benefit to an entirely new level!  Although, after taking the course, I plan to explore Solomon Cost, and I’m inclined to experiment with the software.  A terrific and eye-opening course, altogether!   I hope that I’ll have access to this course for a while yet, as I’d like to go back and review portions of it when I have time to do so.”

“Excellent! I have been using Solomon Adjustment tools for a few years now and typically include them in my work-file for support. This course has provided a better understanding of how the tools work and will in turn make me a better appraiser going forward. I highly recommend this course to anyone looking to take their work to the next level and provide the support required by USPAP.”

“Excellent course material, that is very valuable for everyday use as an appraiser.  The material covered in this course will help me as an appraiser do my job  with more accuracy and more efficiently.”

“Since I am a numbers-junkie, I enjoyed it.  Years ago I made my own Excel spreadsheet for applications like this.  The course has inspired me to update.”

“The multimedia in this course is very good. Overall the presentation was excellent. Quite frankly this course presented a lot of information I had never considered before. This could be a game changer.”

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Course Author

Scott Cullen

Scott Cullen is a boots-on-the-ground Certified Residential appraiser from Minneapolis / St Paul with over 20 years of experience.  He is a cofounder of Solomon, a suite of cloud-based calculators that help over 500 appraisers daily to quickly support their adjustments using the recognized technique of depreciated cost analysis.

His calculators come with licensed cost data built-in, making it easy and economical to support your sales grid adjustments.  Beyond grid adjustments, Solomon supports other assignment results such as effective age, remaining economic life and site value.

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