Elective CE – 1 Hour – TREC Approval Number #45506

For residential appraisals, the most useful approach (of the 3) to value is the Sales Comparison Approach.  In this approach, there is an adjustment made for variations between the subject property and each comparable for square footage differences.  This adjustment is derived from the market and is almost always lower than the “average price per foot” used in a CMA.  This class will look at what comprises “price per foot” and why the adjustment is different with a discussion of a linear regression analysis for price per foot would be helpful. The final section of the class will be dedicated to cost approach, gross rent multiplier and how it could be useful for residential income property. 

Course Chapters:

• What comprises “price per foot” and why the adjustment is different

• Why a discussion of a linear regression analysis for price per foot is helpful.

• Looking at how the Cost Approach is derived including comparison of site sales.

• Gross Rent Multiplier and how it could be useful for residential income property.

• How the Final Reconciliation of value is derived.