COURSE TITLE:
RELE 1203-271 REAL ESTATE APPRAISAL
SEMESTER/YEAR:
SPRING SEMESTER 2012
COURSE DATES:
1st Eight Weeks – Fast Track
INSTRUCTOR:
Al Sechrist
OFFICE LOCATION:
OFFICE HOURS:
SPC Lubbock, ATC 3201 Ave Q, Room 114-A
Tuesday, Thursday 1:00–2:00 PM and 3:30–5:30 PM
Monday, Wednesday 3:00-5:30 PM
email ADDRESS:
asechrist@southplainscollege.edu
OFFICE PHONE:
716-4653
SOUTH PLAINS COLLEGE INPROVES EACH STUDENT’S LIFE
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GENERAL COURSE INFORMATION
COURSE
DESCRIPTION: This course is a study of the central purposes and functions of an appraisal, social and economic
determinant of value, appraisal case studies, cost, market data and income
approaches to value estimates, final correlations and reporting.
COURSE GOALS:
The student will be able to explain the functions of an appraisal; identify the three
approaches to the appraisal process; describe both social and economic
determinant of value; and understand how to write reports that illustrate final
correlations; and examine case studies as related to the appraisal process.
TEXTS AND OTHER MATERIALS
Ventolo, William L. Jr. et.al. FUNDAMENTALS OF REAL ESTATE APPRAISAL. 10th Edition (2008).
Chicago: Real Estate Education Company. ISBN: 1-4277-7874-4.
A financial calculator will be required for this class.
ATTENDANCE POLICY
Punctual and regular class attendance is required. Whenever absences become excessive and, in the
instructor's opinion, minimum course objectives cannot be met due to absences, the student will be
withdrawn from the course. No student will receive credit for the course if he/she does not attend a
minimum of two-thirds of the total class time.
EXAMINATION POLICY
There will be four examinations, including a final examination, generally composed of objective (multiple
choice and true or false) questions. From time to time pop quizzes may be given. Examination bonus
questions may be given, if so, they will generally be essay type questions.
RELE 1203 271 Real Estate Appraisal
Page 2
GRADING POLICY
The student's final grade will be derived as follows: Examinations 80%, Class Participation 20%. Class
participation grade will be based on attendance, participation in discussions, attitude and cooperation of
student, and pop quizzes if any. Each absence, tardy, or leaving at break will subtract from
participation grade. Each examination including the final will count equally toward the student's final
grade. The students's final letter grade will be determined by the following scale: 90-100 = A, 80-89 = B,
70-79 = C, 60-69 = D, and 59 and below = F.
ASSIGNMENT POLICY
At each class meeting, you should have read and understand the material in the chapter or chapters to be
covered and be prepared to discuss this material.
COURSE OBJECTIVES
A.
B.
C.
D.
E.
By actively participating in this course the student will know and understand the common
terminology of real estate appraisal and will be able to demonstrate that knowledge on the
examinations with a passing grade.
The student will possess a good basic understanding of real estate appraisal.
The student will be able to identify the processes that an appraiser goes through in the
preparation of an appraisal.
The successful student will know how to prepare an accurate appraisal on real property.
The student will be able to communicate with an appraiser about a particular estimate of value
and be able to justify any differences in opinion that may arise.
CONTENT OUTLINE
I.
First eight classroom hours
A.
Course Introduction (C 1,2,3,5,6,9)(F 1,5,6,10,15)
Objectives:
1. Purpose and introduction
2. Course syllabus and procedure
3. Acquaint students with instructor and with each other
4. Discussion of the real estate business and practices
5. Overview of the real estate appraisal field.
B.
The Appraisal Profession - Chapter 1 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. The appraiser’s work
2. Licensing and certification
3. FIRREA
4. Other Federal regulation
5. Professional societies
C.
Appraisal Math and Statistics - Chapter 2 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives: 1. Calculators
2. Percents
3. Interest
4. Area and volume
5. Statistics
D.
Real Estate and Its Appraisal – Chap. 3 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Basic concepts
2. Legal descriptions of land
3. Legal rights and interests
4. Forms of property ownership
5. Transfer of title
E.
Real Estate Transactions – Chapter 4 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Elements of a Contract
2. Contract Terms
3. Contract Language
4. Requirements for a Valid Deed
5. Types of Deeds
6. Recordation
RELE 1203 271 Real Estate Appraisal
Page 3
7.
8.
9.
10.
II.
III.
IV.
Fair Housing Laws
Residential Leases
Commercial Leases
Ground Leases
Second eight classroom hours
A.
Review Chapters 1-4 and First Examination (C 4,7,16,18)(F 1,2,3,4,8,9,10,12,13,16)
B.
The Real Estate Marketplace – Chap. 5 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. The market for real estate
2. Basic value principles
C.
The Appraisal Process - Chapter 6 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Steps in the appraisal process
2. Beginning the appraisal process
3. Valuation approaches
4. Relationship of approaches
D.
Building Construction and the Environment – Ch. 7 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. Part I: Planning and Design
2. Part II: Construction Details
E.
Data Collection - Chapter 8 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. The data source list
2. Data forms
3. Data for the sales comparison approach
Third eight classroom hours
A.
Review Chapters 5-8 and Second Exam (C 4,7,16,18)(F 1,2,3,4,8,9,10,12,13,16)
B.
Site Valuation - Chapter 9 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Separate site valuations
2. Site data
3. Environmental concerns
4. Methods of site valuation
C.
The Cost Approach - Chapter 10 - Part I: Reproduction/Replacement Cost (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Cost approach formula
2. Reproduction cost versus replacement cost
3. Finding reproduction/replacement cost
D.
The Cost Approach - Chapter 11 – Part II: Depreciation - (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. Accrued Depreciation
2. Depreciation methods
E.
The Sales Comparison Approach - Chapter 12 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. Steps 3, 4, 5, and 6
2. Application of sales comparison approach
Fourth eight classroom hours
A.
Review Chapters 9-12 and Third Exam (C 4,7,16,18)
(F 1,2,3,4,8,9,10,12,13,16)
RELE 1203 271 Real Estate Appraisal
B.
The Income Capitalization Approach - Chapter 13 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. The income-based approaches to appraisal
2. Potential gross income
3. Effective gross income
4. Net operating income
C.
Direct and Yield Capitalization - Chapter 14 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. Direct capitalization formula
2. Capitalization rate
3. Band of investment method
4. Capitalization techniques using residual income
5. Yield capitalization
6. Value of one dollar
7. Annuity method of capitalization
8. Recapture rates
9. Ellwood tables
Reconciliation and the Appraisal Report - Ch. 15 (C 2,3,5,6,7)
(F 1,3,4,5,8,9,10,12)
Objectives:
1. Definition of reconciliation
2. Reconciliation is not …
3. Types of appraisals and reports
4. Sample appraisal report
D.
E.
Appraising Partial Interest - Chapter 16 (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
Objectives:
1. Types of partial interests
2. Appraising lease interests
F.
USPAP (C 2,3,5,6,7)(F 1,3,4,5,8,9,10,12)
G.
Course Wrap-up and Review for Final Examination
H.
FINAL EXAMINATION Chapters 13-16 and USPAP (C 4,6,7)
(F 1,2,5,7,8,10,11,16)
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RELE 1203 271 Real Estate Appraisal
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SCANS COMPETENCIES
C-1
C-2
C-3
C-4
TIME-Selects goal relevant activities, ranks them, allocates time, and prepares and follows schedules.
MONEY-Uses or prepares budgets, makes forecasts, keeps records, and makes adjustments to meet objectives.
MATERIALS & FACILITIES-Acquires, stores, allocates, and uses materials or space efficiently.
HUMAN RESOURCES-Assesses skills and distributes work accordingly, evaluates performances and provides feedback.
INFORMATION-Acquires and Uses Information
C-5
Acquires and evaluates information
C-6
Organizes and maintains information.
C-7
Interprets and communicates information.
C-8
Uses computers to Process information.
INTERPERSONAL-Works With Others
C-9
Participates as members of a team and contributes to group effort.
C-10
Teaches others new skills.
C-11
Serves clients/customers-works to satisfy customer’s expectations.
C-12
Exercises leadership-communicates ideas to justify position, persuades and convinces others, responsibly challenges existing procedures
and policies.
C-13
Negotiates-Works toward agreements involving exchanges of resources resolves divergent interest.
C-14
Works with Diversity-Works well with men and women from diverse backgrounds.
SYSTEMS-Understands Complex Interrelationships
C-15
Understands Systems-Knows how social, organizational, and technological systems work and operates effectively with them.
C-16
Monitors and Correct Performance-Distinguishes trends, predicts impacts on system operations, diagnoses systems performance and
corrects malfunctions.
C-17
improves or Designs Systems-Suggest modifications to existing systems and develops new or alternative systems to improve
performance.
TECHNOLOGY-Works with a variety of technologies
C-18
Selects Technology-Chooses procedures, tools, or equipment including computers and related technologies.
C-19
Applies Technology to Task-Understands overall intent and proper procedures for setup and operation of equipment.
C-20
Maintains and Troubleshoots Equipment-prevents, identifies, or solves problems with equipment, including computers and other
technologies.
FOUNDATION SKILLS
F-1
F-2
F-3
F-4
F-5
F-6
F-7
F-8
F-9
F-10
F-11
F-12
F-13
F-14
F-15
F-16
F-17
BASIC SKILLS-Reads, writes, performs arithmetic and mathematical operations, listens and speaks
Reading-locates, understands, and interprets written information in prose and in documents such as manuals, graphs, and schedules.
Writing-Communicates thoughts, ideas, information and messages in writing, and creates documents such as letters, directions,
manuals, reports, graphs, and flow charts.
Arithmetic-Performs basic computations, uses basic numerical concepts such as whole numbers, etc.
Mathematics-Approaches practical problems by choosing appropriately from a variety of mathematical techniques.
Listening-Receives, attends to, interprets, and responds to verbal messages and other cues.
Speaking-Organizes ideas and communicates orally.
THINKING SKILLS-Thinks creatively, makes decisions, solves problems, visualizes, and knows how to learn and reason
Creative Thinking-Generates new ideas.
Decision-Making-specifies goals and constraints, generates alternatives, considers risks, and evaluates and chooses best alternative.
Problem Solving-Recognizes problems and devises and implements plan of action.
Seeing Things in the Mind’s Eye-Organizes and processes symbols, pictures, graphs, objects, and other information.
Knowing How to Learn-Uses efficient learning techniques to acquire and apply new knowledge and skills.
Reasoning-Discovers a rule or principle underlying the relationship between two or more objects and applies it when solving a problem.
PERSONAL QUALITIES-Displays responsibility, self-esteem, sociability, self-management, integrity and honesty
Responsibility-Exerts a high level of effort and preservers toward goal attainment.
Self-Esteem-Believes in own self-worth and maintains a positive view of self.
Sociability-Demonstrates understanding, friendliness, adaptability, empathy, and politeness in group settings.
Self-Management-Assesses self accurately, sets personal goals, monitors progress, and exhibits self-control.
Integrity/Honesty-Chooses ethical courses of action.
RELE 1203 271 Real Estate Appraisal
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CAMPUS GUIDELINES
CHILDREN ON CAMPUS
Many of the students attending classes at South Plains College are also parents who value the opportunity to participate in higher education. Sometimes
students are faced with the decision of whether to remain at home with their children, bring children with them to class, or be absent from class. The
following guidelines address concerns for the safety of children on campus and provide for an environment conducive to learning:
1.
Students are not allowed to bring children to class and will be asked to leave in the interest of providing an environment conducive for all
students enrolled in the class. Students are responsible for adherence to the attendance requirements set forth by the instructor in the course
syllabus.
2.
Children may not be left unattended. In order to provide for the safety of children on campus, parents or other guardians are responsible for
supervising children while utilizing services or conducting business on campus.
3.
Disruptive children will not be allowed to interfere with college business. Parents or other guardians are responsible for supervising and
controlling the behavior of children they have brought on campus.
AMERICANS WITH DISABILITIES ACT STATEMENT
“Students with disabilities, including but not limited to physical, psychiatric or learning disabilities, who wish to request accommodations in this class should notify
the Special Services Office early in the semester so that the appropriate arrangements may be made. In accordance with federal law, a student requesting
accommodations must provide acceptable documentation of his/her disability to the Coordinator of Special Services. For more information, call or visit the Special
Services Office in Rooms 113-C or 112 at the Reese Center, ext. 4654 or 4675. On the Levelland Campus, the Special Services Office is located in the Student
Services Building, ext. 2529.
DIVERSITY STATEMENT*
In this class, the teacher will establish and support an environment that values and nurtures individual and group differences and encourages engagement
and interaction. Understanding and respecting multiple experiences and perspectives will serve to challenge and stimulate all of us to learn about others,
about the larger world, and about ourselves. By promoting diversity and intellectual exchange, we will not only mirror society as it is, but also model
society as it should and can be.
(*Developed by the Title III summer 2001 participants as part of the training opportunity, May-June 2001, South Plains College).
GENERAL SAFETY ON CAMPUS
South Plains College recognizes the importance of safety on campus. The protection of persons and property is a responsibility which we all share.
Personal safety begins with the individual. The following guidelines are intended to assist you in protecting yourself and to encourage practices that
contribute to a safe environment for our campus community.
e
e
e
e
Never leave your personal property unsecured or unattended.
Look around and be aware of your surroundings when you enter and exit a building.
Whenever possible, avoid walking alone, particularly after dark. Walk to your vehicle with other class members or request that the
Security Guard walk you to your car.
When approaching your vehicle, keep your keys in your hand; look under your car and in the back seat and floorboard. Lock the
doors as soon as you are inside your car.
FOOD AND DRINK IN CLASSROOMS
It is the policy of South Plains College not to permit food or drink in the classrooms or laboratories.
In case of emergency, contact the following numbers but DO NOT leave a voice mail message:
894-9611, ext. 2338 - Levelland Campus 747-0576, ext. 4677 - ATC 885-3048, ext. 2923 - Reese Center (mobile 893-5705)