COURSE DESCRIPTION FOR RESIDENTIAL APPRAISER

The three residential appraiser courses must be completed sequentially and satisfactory completion of these courses will qualify the student to take the residential appraiser licensing examination. For certification examination, G-1 must be satisfactorily completed.


INTRODUCTION TO REAL ESTATE APPRAISAL (R-1) 30 hrs.

This course introduces the student to the subject of real estate appraisal and prepares the student for the R-2 course on "Valuation Principles and Procedures". It begins with coverage of basic real property law, followed by coverage of the various concepts of value and the operation of real estate markets. Relevant mathematical concepts are then reviewed and the student is introduced to statistical concepts used in appraisal practice. Next comes the coverage of real estate financing terminology and practice, followed by an introduction to the basics of residential construction and design. The student is then provided an overview of the entire valuation (appraisal) process, and the course concludes with specific coverage of residential neighborhood analysis, two of the most important steps in the appraisal process.


VALUATION PRINCIPLES AND PROCEDURES (R-2) 30 hrs.

This course focuses on the procedures (methodology) used to develop an estimate of property value and how the various principles of value relate to the application of such procedures. Emphasis is in appraisal of residential 1-4 unit properties and small farms: all the concepts and procedures covered are applicable to the appraisal of all types of properties. The course begins with a review of the appraisal process and proceeds into thorough coverage of the sales comparison approach, followed by site valuation methods used to appraise 1-4 unit properties. The cost approach is then covered in depth. The basic concepts and methodology associated with the income approach are covered, with emphasis on direct capitalization using an overall rate and the gross rent multiplier technique. Finally, the student is introduced to the process of reconciling property value estimates obtained through application of the approaches to value.


APPLIED RESIDENTIAL
PROPERTY VALUATION (R-3) 15 hrs.

This course covers laws, rules and standards which must be followed by appraisers and focuses on the application of principles and practices to the appraisal of residential 1-4 unit properties and small farms. The student is first acquainted with federal laws/regulations applicable to appraisers and the provisions of the North Carolina Real Estate Appraisers Act and related Commission Rules. Next comes coverage of the Uniform Standards of Professional Appraisal Practice (which are part of the Commissions Rules), followed by coverage of appraisal reports, with emphasis on standard report forms. The student then participates in a comprehensive case study of an appraisal of a single-family house using the URAR form. Instruction is then provided on various special considerations in appraising other types of residential 1-4 unit properties and in appraising farms. Finally, the student is introduced to appraising special (partial) property interest and to condemnation appraisal.


INTRODUCTION TO
INCOME PROPERTY APPRAISAL(G-1) 30 hrs.

This course introduces concepts and techniques used to appraise real estate income properties. It begins with a discussion of underlying economic principles and motivations for investing in income property, The appraisal process is then reviewed with emphasis on income property. This is followed by a discussion of real estate market analysis, property analysis, and site valuation. Mathematical and statistical concepts used in the appraisal of income property are covered next followed by coverage of how to use financial tables and/or financial calculators to solve a variety of problems associated with analysis of real estate income properties, including present value, loan calculations, estimation of net operating income, and estimation of before tax cash flow. Next students are introduced to other capitalization rates.


Advanced Income Capitalization Procedures(G-2) 30 hrs.

This course reviews and then expands on the concepts introduced in Course G-1. The direct capitalization techniques introduced in G-1 are expanded to include various band of investment and residual techniques used in income property appraisal. This is followed by a thorough discussion of the concepts of yield rates and of discounted cash flow analysis (yield capitalization), which is the primary focus of this course. Financial leverage is also discussed so students better understand the relationship between various yield rates and capitalization rates. Several traditional yield capitalization formulas including Inwood, Hoskold, Ellwood and Akerson, are then discussed. Although rendered obsolete by the advent of financial calculators, these formulas are still used by many appraisers and students should be familiar with them. A financial calculator is required for this course.


Applied Income Property Valuation(G-3) 30 hrs

This course covers laws, rules and standards which must be followed by appraisers and focuses on the application of principles and practices to the appraisal of income properties. The course begins with a review of federal laws/regulations applicable to appraisers, followed by coverage of the North Carolina Appraisers Act and coverage of the Uniform Standards of Professional Appraisal Practice (which are part of the Board's rules). Preparation of narrative appraisal reports is then covered, with students also being introduced to the Uniform Commercial and Industrial Appraisal Report (UCIAR) form. Coverage then shifts to appraising leased income properties, with emphasis on the effect of various lease provisions on the value estimate. The student then participates in highest and best use case studies, followed by case studies of appraisals of various types of existing income properties, which is the major focus of the course.. The course concludes by covering considerations in appraising various development projects.