Home
Up

CLARION UNIVERSITY OF PENNSYLVANIA

COLLEGE OF BUSINESS ADMINISTRATION
DEPARTMENT OF FINANCE

COURSE TITLE: RE 472: INCOME PROPERTY APPRAISAL

TIME AND LOCATION: MWF 3:30-4:45, Room 201 Still

SEMESTER: Spring 2001

INSTRUCTOR: Dr. Jerry Belloit            

EMAIL: belloit@mail.clarion.edu

OFFICE: 218 Still Hall

OFFICE HOURS:

Usually 7:40-10:00, MW Tu 10:00-11:00 (Please call ahead if possible) And by appointment

TELEPHONE: 393­2208

TEXTBOOK:

Real Estate Appraisal, Halbert C. Smith, Linda C. Root, and Jerry D. Belloit

CALCULATOR:

A financial calculator is also required for this course. The Hewlett-Packard 10B is strongly recommended. There is a website for using the HP10B. (Students should avoid a TI BAII or Radio Shack equivalent.) Students not choosing the HP10B will be responsible for learning the operation of their calculator.

GRADING SYSTEM:

1.	Grading will be on a ten point scale:      90-100% = A
      	Best Two Midterm exams (20% each)    40%    80-89% = B
      	Final exam                           40%    70-79% = C
        Project                              15%    60-69% = D
        Attendance/Participation/Preparation  5% Below 60% = F

2. All exams will be cumulative. No make up­exams will be given. For all exams you will be permitted to use one 8.5 X 11 paper with any notations that you wish such as class notes, prayers, inspirational messages, etc. Any personal schedule conflicts with the exams must be identified and reported to me by January 24 to see if there might be a way to resolve the conflict. Final Grade will be assigned according to the total number of points earned.

3. Please read the assigned chapter (except for day 1) before coming to class. My lectures will assume you have read the material, and are familiar at least with terminology; this will eliminate obvious questions that are answered in the book, and allow us to learn the concepts. Read the book first.

4. Appraisal Assignments are listed on the course schedule. You should complete these assignments before coming to class on the assigned day.    If you must miss a class and wish to hand in your assignment, you must notify me before class.

5. Academic dishonesty will not be tolerated in this class. Cheating on examinations, inappropriate collaboration on projects, and other forms of dishonesty will be dealt with in a serious and formal manner. The minimum penalty for academic dishonesty in this class will be course failure.

6. Each student will be required to have a 3 1/2 inch diskette for the computer. The diskettes must be double sided, high density.

7. Class attendance is mandatory and strongly recommended. Missing class unnecessarily will result in one or more letter reductions on your final grade. In addition, if you are taking this course for pre-licensing education, missing class may prevent you from getting credit.

COURSE DESCRIPTION:

This is a course designed to provide advanced instruction in income property appraisal. This course will address the techniques necessary to estimate the value of an income producing property. Prerequisite: RE 470 or instructor's permission.

COURSE LEARNING OBJECTIVES:

  1. The student will be able to name and explain the ten elements of USPAP with particular attention to Standards One and Two.
  2. The student will be able to correctly characterize various appraisal principals and identify examples of each principal.
  3. The student will be able to describe reasons for urbanization and patterns of urban growth.
  4. The student will be able to perform applied market analysis including projection of demand and supply.
  5. The student will be able to indicate and explain the major steps to commercial construction.
  6. The student will be able to solve various time value of money problems including present and future values of lump sums and annuities including discounted cash flow problems.
  7. The student will be able to list and explain the advantages and disadvantages of the different ownership forms.
  8. The student will be able to explain and use the techniques for estimating the overall rate.
  9. The student will be able to estimate the value of an income producing property using discounted cash flow analysis, residual techniques, and single period valuation techniques.
  10. The student will be able to compute the value of an income producing using the sales-comparison approach.
  11. The student will be able to compute the value of an income producing using the cost-depreciation approach.

CLASSROOM SESSIONS SCHEDULING:

Month

Day

Topic/Assignment

Chapter

Jan

17

Introduction/What is Appraisal?

1

 

22

Regulation of the Appraisal Profession and Appraisal Standards

2

   

(Computer Lab: Learn https://www.appraisalfoundation.org/uspap2000/toc.htm. Also review all 4 qualification categories: https://www.appraisalfoundation.org/RPAQC.pdf  Note:  You will need a PDF plugin to access this page.  The COBA computer lab has these plugins installed.)

 
 

24

Value Theory / Appraisal Principles

3,4

 

 

(Computer Lab: Review https://www.appraisalfoundation.org/bokcover.htm)

 
 

29

Reconciliation, Value Conclusions, and Appraisal Reports

(Computer Lab: Review https://www.appraisalfoundation.org/uspap2000/standard2.htm)

5

   

Submit draft Letter of Transmittal, Certification, Purpose, and Definition of Value Used (Keep on diskette!)

 

 

31

Basics of Construction

6

Feb.

5

Basics of Construction (cont.)

 

 

7

Market Analysis

7

 

12

Market Analysis (cont.)

 
 

14

Site and Improvement Analyses

8

   

Submit Area and Neighborhood Analysis Draft (Keep on diskette!)

 
 

19

Site and Improvement Analyses (cont.)

 
 

21

Exam 1

 
Mar.

5

Comparable Sales Analysis

9

 

7

Comparable Sales Analysis (cont.)

 
   

Submit Site and Improvement Analysis Draft (Keep on diskette!)

 
 

12

Comparable Sales Analysis (cont.)

 
 

14

Site Valuation

10

 

19

Cost-Depreciation Approach: Reproduction Cost Estimation

11

 

21

Cost-Depreciation Approach: Estimation of Accrued Depreciation

12

   

Submit Site Valuation Draft (Keep on Diskette)

 
 

26

Appraisal Mathematics and Real Estate Finance

13

 

28

Income Estimation and Analysis

14

   

Submit Cost-Depreciation Analysis Draft (Keep on Diskette!)

 
Apr.

2

Income Estimation and Analysis (cont.)

 
 

4

Capitalization Rates

15

    Submit Income Estimation and Analysis Draft (Keep on Diskette!)  
 

9

Capitalization Rates (cont.)

 

 

11

Exam II

 

 

16

Capitalization Rates (cont.)  
 

18

Income-capitalization Methods 16
 

 

Submit Estimation of Capitalization Rate Draft (Keep on Diskette!)

 

 

23

Income-capitalization Methods (cont.)  
   

Submit Ellwood, Building Residual, and Property Residual Valuations (Keep on Diskette!)

 
 

25

Exam III  
May

4

Statistical Analysis

17

    Submit Discounted Cash Flow Valuation Draft (Keep on Diskette!)  
 

6

Special Applications of Appraisal

18

   

Submit Final Project

 
Final Exam Schedule is to be announced.

Project:

Project is a demonstration appraisal report. Project grade will be reduced by 1 point for every submission date missed and for subsequent days delay.