Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Credible Cost Approach Class (7-Credit Hours)

Credible Cost Approach

Price: $119.00

Credit Hours: 7

Key Points:

This class is designed to dispel the usual excuses as to why the cost approach is seldom completed by some appraisers. It starts by viewing the approach as outlined by the FNMA form. Then it builds on the concept and provides methodology by which the amounts that are usually “guestimates” can become logically calculated estimates. By using these techniques, the approach can provide logical and supported estimates of value for virtually any single family home. This can be very helpful, especially in small markets where sufficient closed sales are often difficult or impossible to find without crossing the expected guidelines regarding distance, style, or other criteria—thus making the market approach less viable.

Topics include:

  • USPAP implications
  • Interaction between approaches
  • Using the FNMA 1004 report
  • Other site improvements
  • Land value methods
  • Market approach
  • Land residual method
  • Allocation method
  • Extraction method
  • Depreciation calculations age-life
  • Breakdown method
  • Modified age-life method
  • Component cost derivations
  • Aggregated paired sales method
  • Remaining economic life equation