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Degree Applicable Glendale Community College

October, 2006

COURSE OUTLINE

Real Estate Course 1

Basic Appraisal Principles and Procedures

(60 Hours — 3.5 Units)

I. Catalog Statement

Real Estate Course 1 meets the requirements of the 2008 Appraisal Qualifications Board of the Appraisal Foundation. The emphasis of this course is on residential real estate. It covers the basic real estate appraisal principles, basic real estate appraisal procedures, and meets the license requirements for all levels of appraisal licensure. It is required for the trainee license, residential license, certified residential license, and certified general license. This course qualifies with the California Department of Real Estate as a statutory/pre-license real estate course for both the salesperson and broker education requirements.

Units - 3.5

Lecture hours - 3.5

Prerequisite: None.

II. Course Entry Expectations

Skills Level Ranges: Reading 5; Writing 4; Listening/Speaking 4; Math 2.

III. Course Exit Standards

Upon successful completion of the required course work, the student will be able to:

1. describe the appraisal process;

2. identify land/site considerations;

3. list six of the classic economic principles in determining real estate value;
    1. assess the importance of the sales comparison approach, the cost approach, and the income approach to correlating value for residential properties;
    2. explain how the market comparison approach is a response to the influence of supply and demand;
    3. demonstrate how weighting (reconciliation) the results of the three appraisal approaches leads to the final value opinion;
    4. describe bundle of rights concept as applied to appraising special interests.

      5. IV. Course Content

      A. Real Property Concepts and Characteristics 5 hours

      1. Basic real property concepts

      2. Real property characteristics

      3. Legal description

      B. Legal Consideration 5 hours

      1. Forms of ownership

      2. Public and private controls

      3. Real estate contracts

      4. Leases

      C. Influences on Real Estate Values 5 hours

      1. Governmental

      2. Economic

      3. Social

      4. Environment, geographic and physical

      D. Types of value 4 hours

      1. Market value

      2. Other value types

      E. Economic Principles 4 hours

      1. Classical economic principles

      2. Application and illustrations of the economic principles

      F. Overview of Real Estate Markets and Analysis 5 hours

      1. Market fundamentals, characteristics, and definitions

      2. Supply analysis

      3. Demand analysis

      4. Use of market analysis

      G. Ethics and How They Apply in Appraisal Theory and Practice 2 hours

      H. Overview of Approaches to Value 3 hours

      I. Valuation procedures 9 hours

      1. Defining the problem

      2. Collecting and selecting data

      3. Analyzing

      4. Reconciling and final value opinion

      5. Communicating the appraisal

      J. Property Description 9 hours

      1. Geographic characteristics of the land/site

      2. Geologic characteristics of the land/site

      3. Location and neighborhood characteristics

      4. Land/site considerations for highest and best use

      5. Improvements — architectural styles and types of construction

      K. Residential Applications 5 hours

      L. Testing 4 hours

      1 Midterm

      2. Final

      TOTAL HOURS - 60

      V. Methods of Presentation

      The following instructional methodologies may be used in the course:

    5. lectures;

      6. 2. guest speakers;

      3. online;

      4. virtual tours;

      5. field trips.

      VI. Assignments and Methods of Evaluation
    6. Quizzes.
    7. Midterm examination.
    8. Reports/projects.
    9. Final examination.

VII. Textbooks

Huber W., Messick, L., IFAC, and Pivar, W. Real Estate Appraisal (Principles & Procedures),

3rd Edition.

Covina: Educational Textbook Company, Inc. 2006. (626) 339-7733

10th Grade Textbook Reading Level. ISBN: 978-0-0916772-22-0